Microfinance Institutions: Do they Empower Women? A Case Study of Light Microfinance Pvt. Ltd.

Microfinance as an activity involves giving small loans to poor but economically active people, so as to bring them within the scope of financial inclusion. Microfinance is a celebrated tool of poverty alleviation but practitioners also believe that it can uplift the status of women in the society, since women are the primary target audience of micro-finance operations. The current case study highlights the working and activities of Light Microfinance Pvt. Ltd., a microfinance institution based in Ahmedabad district of Gujarat state in India. The institution was interested in finding the impact of its operations and for this purpose, fifty clients were interviewed. It was found that the loans helped increase the incomes of the women members, which gave them a sense of self-worth and confidence. Moreover, the group formations increased their unity and they were confident of solving any developmental issues in their village. However, when it came to taking independent decisions of big ticket items, or playing a greater role in decision-making processes at home, there was almost no change in the role of these women even after availing microfinance.