What Are the Benefits of Microfinance for Women?

Article Details
  • Written By: Geri Terzo
  • Edited By: PJP Schroeder
  • Last Modified Date: 17 August 2019
  • Copyright Protected:
    Conjecture Corporation
  • Print this Article
Free Widgets for your Site/Blog
As its interior cools, the moon is gradually shrinking, causing wrinkles on its surface and creating "moonquakes."  more...

September 23 ,  1949 :  US President Harry S. Truman publicly announced the US had lost its monopoly on nuclear weapons.  more...

Many of the microfinance programs available are in fact designed for women, who have in many ways proven to be responsible borrowers. Microfinance is the extension of economic opportunities via small but effective loans and other financial services to the poor in poverty-stricken regions of the world. These clients would not have access to financing without microfinance. In many of these regions, gender equality is not enforced, and as a result, many lenders cater to the female populations in these places. The benefits in microfinance for women are life changing and extend beyond finances to the provision of education and training, economic opportunities, and female empowerment, leading to an improved standard of living for poor families including children.

In poor, rural parts of the world where microfinance is most influential, a very small amount of money can go a very long way. Small loans are offered to the poor in order that businesses might be started, households can be run, and families have access to education and medical supplies. In addition to cash, microfinance is also provided in the form of bank savings accounts, which teach the borrower money management skills.


Microfinance for women gives females the tools needed to properly run a household or business. It also gives women in poverty-stricken places the confidence that can only come from having financial success. Women especially can be the targets of abuse or other forms of mistreatment in economically vulnerable places, and by empowering the female segment of the poor population, acts of violence can be reduced.

Other benefits surrounding microfinance for women include opportunities to improve upon credit scores and obtain future financing. Women who make timely payments on microfinance loans to lenders, such as microfinance institutions (MFIs), increase the likelihood that other financial institutions may extend further financing to them. Future financing can help with the expansion of a small business, the financing of a child's education, or access to medical care in time of need.

Microfinance for women allows poor female residents to become independent in places that are traditionally dominated by men. Access to financing can increase knowledge and give women the support needed to venture out of the home for the first time and start new businesses, for example. This influences communities and improves social practices so that women have a higher status in life. It also prepares future generations to perpetuate this financial independence. For instance, benefits of microfinance for women include mothers sending their daughters to obtain an education when they otherwise would have trained young girls to keep house.


You might also Like


Discuss this Article

Post 3

@KoiwiGal - Microlending has really made a huge difference to a lot of people in the world, because it can be very targeted. I think that's actually more important than making it equal, to be honest. It should be directed towards anyone with a good plan and the ability to carry it out to better their family and community, whether they happen to be male or female.

Post 2

@Mor - Although you make good points, I think it's important to note that there is an even more important reason that microfinance funds should be directed specifically towards women. In general, they are simply not going to be given many chances, and not nearly as many as men. If the funds are not put aside specifically for women, then it's not a matter of a 50/50 split.

Many impoverished societies still have entrenched patriarchal systems and will automatically give any resources to men because they are considered to be the leaders by default.

Basically, even if women weren't better at handling the money, they would still need organizations to earmark funds for them so that they could get a fair chance to improve their lives in this kind of system. The fact that they are often better placed to improve the lives of whole families is wonderful, but it's not the whole story.

Post 1

I've spent some time in West African countries and it's considered a widely known truth over there that the women are the ones who are the overall hardest workers and the most responsible members of the family group. Men might work harder during certain seasons, when they are sowing or harvesting crops, but women work from sundown to sunup all year around, grinding grain, cooking and making clothes and so forth.

It's far more likely that women will know the value of commodities and the ways in which they can stretch a small amount of money. This isn't universally true, but it's true enough to make it far more viable to focus on microfinance for women, rather than men.

Post your comments

Post Anonymously


forgot password?