Financial Literacy for Economic Empowerment: Microfinance Initiatives in Indian SHGs

Abstract

Purpose: This study aims to evaluate how improved financial literacy, facilitated by microfinance programs, influences the empowerment of women within Self Help Groups (SHGs) in India.

Design/Methodology/Approach: This study explores the impact of enhanced financial literacy through microfinance programs on women's economic empowerment within Self Help Groups (SHGs) in India. The methodology involves conducting a comprehensive literature review using academic databases, government reports, and relevant case studies to gather data on the effectiveness of financial literacy interventions. Additionally, the study employs ABCD analysis as a structured framework to evaluate the outcomes of these interventions. This methodological approach aims to provide a comprehensive assessment of how financial literacy programs contribute to women's economic empowerment in SHGs, offering insights to inform future policy and programmatic decisions in promoting financial inclusion and gender equality.

Findings/Result: The research demonstrates notable advancements in financial knowledge, access to financial services, and positive shifts in financial behaviours among women participating in Self Help Groups (SHGs) in India after engaging in improved financial literacy programs facilitated by microfinance initiatives. These findings highlight the critical impact of these programs in enhancing economic empowerment and expanding financial inclusion within underserved communities, especially among rural women.

Originality/Value: The study underscores notable advancements in financial knowledge, service accessibility, and financial behaviours among participants, underscoring how tailored financial education plays a pivotal role in advancing economic empowerment and fostering financial inclusion in marginalized rural communities. These insights contribute important perspectives to current literature by advocating for targeted interventions that enhance women's economic empowerment and align with sustainable development objectives through improved financial literacy.

Paper Type: Review based Analysis.