The Role of Micro-Credit in the Economic Empowerment of Women with Special Reference to Kudumbashree Units in Thiruvananthapuram Corporation

Abstract

Microcredit, also known as microfinance, is a financial service that provides small loans, typically to entrepreneurs or individuals in low-income communities who lack access to traditional banking services. One of the key features of microcredit is its focus on providing loans to borrowers who may not have collateral or a credit history, making it easier for them to access funds compared to traditional lending institutions. Microcredit institutions often work closely with borrowers, providing financial literacy training and ongoing support to help ensure the success of their businesses.Kudumbashree, a women-oriented, community-based poverty reduction program, was launched in Kerala, India, in 1998. Its primary goal is to empower women by enhancing their income and ensuring their active participation in local governance. The program operates through Neighbourhood Groups (NHGs), which are small, self-help groups comprising women from economically backward families. These groups engage in various activities such as micro-enterprises, skill development programs, and community development initiatives. Kudumbashree has been instrumental in promoting women's entrepreneurship and economic self-reliance. The present study is an attempt to assess the role of micro credit in economic empowerment of women in Kudumbashree units in Thiruvanathapuramcorporation.