Microfinance, Women Empowerment, and Transformational Leadership: A Study of Himachal Pradesh

Abstract

Microfinance in India flows to the target group with the help of diverse institutions that involve banks, government agencies, and non-government organizations. The concept of microfinance was introduced in India especially for the benefit of poor rural clients demanding credit to fulfil their needs. Self-Help Groups (SHGs) formed under microfinance programmes are self-sustaining and help nurture leadership qualities in women. The scheme of microfinance through SHGs empowers via promoting favourable conditions for women whereby they can have the opportunity to have a say in decision making and take other important decisions for the benefit of the group members. Women under SHGs are now proving themselves as transformational leaders by adding new dimensions to the personality of rural women. Having emerged as successful leaders, they have been transforming lives of many including their families. This study is based on a primary survey where support from secondary sources has also been taken. A schedule was used to collect primary information, nevertheless, secondary data have also been used to support and supplement the objectives and thus to get an insight into the status of disbursement of credit to SHGs through Bank-linkage programme in India. This study will not only help to analyse success of financial inclusion programmes like microfinance, but also to offer us an insight as to how deeply the programme has affected lives of rural people especially women in particular.

Keywords: Microfinance, Self-Help Group, Self-Help Group Bank-Linkage Programme, Women Empowerment

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