Impact of Microfinance on Rural Development through Self-Help Groups

Author(s)	Varinder Kaur, Dr. Nameeta Garg
Country	India
Abstract	Microfinance has emerged as an important instrument for promoting financial inclusion, poverty reduction and rural development in developing countries, particularly in India. Self-Help Groups (SHGs) have played a significant role in connecting rural households, especially women, with formal financial institutions through savings, credit and livelihood activities. The present study examines the impact of microfinance on rural development through Self-Help Groups, with particular emphasis on financial inclusion, income generation, entrepreneurship, savings behaviour, employment opportunities and women's empowerment. The study is based on a review of existing literature and secondary information relating to microfinance and SHGs in India. Previous studies indicate that participation in SHGs can improve access to credit, savings, decision-making, social participation and economic opportunities. The study concludes that microfinance through SHGs can contribute substantially to rural development when financial services are combined with skill development, entrepreneurship support, financial literacy, market linkages and institutional support.
Keywords	Microfinance, Self-Help Groups, Rural Development, Women Empowerment, Rural Entrepreneurship,
Field	Mathematics > Economy / Commerce
Published In	Volume 8, Issue 5, September-October 2026
Published On	2026-09-05

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research