A Study on Impact of Self-Help Groups on Financial Inclusion of Women in Amravati City

Women’s financial empowerment is essential for inclusive and sustainable rural development. Self-Help Groups (SHGs) have emerged as an important instrument for improving the economic status of rural women by promoting savings, providing access to credit, and supporting income-generating activities. The present study examines the role of SHGs in enhancing the financial empowerment of rural women, with special focus on business development, income improvement, financial awareness, and decision-making ability. The study is based on primary data collected from 50 rural women SHG members using a structured questionnaire. Descriptive analysis and chi-square test were used to analyze the data and test the hypothesis. The findings reveal that participation in SHGs has significantly contributed to improved financial literacy, better access to formal banking services, increased income levels, and enhanced confidence in financial decision-making. A majority of respondents reported that SHG loans played a positive role in the growth and success of their small businesses. However, the study also identifies challenges such as social and cultural barriers, limited financial awareness among some members, and procedural difficulties in accessing credit. Despite these constraints, the overall impact of SHGs on women’s financial status is positive. The study concludes that SHGs are an effective mechanism for empowering rural women financially and recommends strengthening training programs, simplifying loan procedures, and improving institutional support to enhance their effectiveness.