MICROFINANCE AND WOMEN’S EMPOWERMENT IN RURAL AREAS: TRANSFORMATIVE POTENTIAL AND PERSISTENT CHALLENGES

Abstract

Microfinance has emerged as a tool for poverty alleviation and economic inclusion, particularly for women in rural areas. This paper explores the relationship between microfinance initiatives and women’s empowerment, analyzing both the potential benefits and the limitations of such programs. Drawing on global case studies and empirical evidence, the article examines how microfinance influences women's economic independence, decision-making power, and social status. It also addresses challenges such as indebtedness, gender norms, and sustainability. Policy recommendations are provided for improving the effectiveness of microfinance as a strategy for rural women’s empowerment.