Prof. Narendra Pal Singh and Vaibhav Kumar
Abstract:
Limited access to formal financial services continues to affect many women in rural areas. Low income, lack of collateral, and weak banking infrastructure often restrict their ability to obtain institutional credit. Microfinance programs have emerged as an important approach to address this gap. These initiatives provide small loans, savings options, and group-based financial support to people who are often excluded from traditional banking systems.
This study examines how microfinance contributes to improving the economic conditions of rural women. The analysis uses secondary data obtained from national institutions such as the National Bank for Agriculture and Rural Development, the Reserve Bank of India, and the National Rural Livelihoods Mission. These sources provide information on the expansion of microfinance activities and the participation of women in these programs.
The study focuses on several indicators, including the growth of Self-Help Groups, the rise in women’s membership, and the amount of bank credit linked to these groups. The data show that the number of SHGs and women participants has increased over time. This indicates wider access to financial services among rural households.
The expansion of bank credit has also allowed many women to start income-generating activities. These include small businesses, livestock rearing, handicrafts, and agricultural work. Such activities help increase household income and improve economic stability.
