Financial Inclusion for Rural Women: A Study in India
Keywords:
microfinance, entrepreneurship, access to credit, financial inclusion, rural women, and economic empowerment.Abstract
By facilitating their access to loans and other financial services, this study explores the critical role that financial inclusion plays in enabling Indian rural women entrepreneurs. It highlights the main obstacles that prevent rural women from fully engaging in the financial ecosystem, including sociocultural limitations, a lack of financial awareness, and the restricted availability of formal banking services. The study uses a mixed-method approach to tackle these issues, integrating qualitative insights from five in-depth case studies of women entrepreneurs in rural India with quantitative analysis of statistical data from government and
banking organisations. The results highlight how important government programmes like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and efforts by microfinance organisations and self-help groups (SHGs) are in closing the gap in financial access. For example, PMJDY has made it easier for more than 480 million bank accounts to be opened, many of which are held by women. This has allowed them to save, invest, and obtain credit. By offering loans without collateral and establishing peer networks, Self-Help Groups (SHGs), which are funded by the National Rural Livelihood Mission (NRLM), have played a significant role in encouraging entrepreneurial endeavours. In order to overcome systemic and cultural barriers, the report also emphasises the significance of financial literacy initiatives like the Financial Literacy and Credit Counselling Centres (FLCCs). These initiatives have shown quantifiable progress in improving women’s knowledge of financial products, empowering them to make well-informed decisions,
and decreasing their dependence on unofficial credit sources. The study emphasises important issues, including inadequate internet access and insufficient digital literacy among rural women, while arguing for improved digital banking infrastructure. For inclusion to be sustained, these gaps must be filled via mobile banking, regional training, and strong stakeholder partnerships. In order to promote fair and long-lasting economic empowerment for women, this research urges a greater emphasis on creating gender-sensitive financial products, combining financial education with entrepreneurial training, and enhancing rural
connection.
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