Published Paper Details:

Microfinance enhances gender equality and reduction of poverty but little has been studied on its effects in low-literacy, rural Muzaffarpur, Bihar. This paper investigates its contribution to economic, social and psychological empowerment of women in a flood prone area with the questions: (1) What is the impact of microfinance on economic independence? (2) What are its implications on decision making? (3) What are the non-financial benefits that arise? About 150 participants, 50 non-participants of SHG, were surveyed using mixed-methods, and 20 interviews conducted through Jeevika. Data was analyzed using Python and NVivo. The participants experienced a 81% increase in income ( vs. 10% p < 0.001), increased income control (3.8 vs. 1.9, p < 0.001) and decision-making (3.6 vs. 2.1, p < 0.001). Socially, 68 percent became mobile but 12 percent experienced debt pressures, which substantiate the framework developed by Kabeer and calls on specific policies with MFI.