Impact of Microcredit on Employment Generation and Empowerment of Rural Women in India

Abstract

This study examines the responsibility of microfinance institutions towards changes in the livelihood practices of the borrowers. Considering a total of 350 borrowers of West Bengal, the impact of microfinance on their lives has been observed empirically by applying different statistical tools. In this study, it has been observed that MFIs with its offerings support to shape up the lifestyle practices of the beneficiaries over time. The microcredit utilisation helps the borrowers to start up income-generating activities and engagement of manpower within their household and beyond. This study contributes to the extant literature on microfinance by comparing pre-loan and post-loan phases and identifies the contemporary role of MFIs. By considering the appropriate framework and approach, this study is explicable towards policymakers for designing further policies in this context and helps identify resources that need to flourish the current state in the future.