How microfinance helps women

1. Reducing Vulnerability to Poverty

Providing women access to finance can lead to empowerment as they become more affirmative at home and in social affairs. Through their newfound ability to hold active roles in their own lives and the lives of their families, women are becoming less vulnerable to poverty.

2. Promoting Collective Welfare

Women are more likely than men to spend their profits on household and family needs. Assisting women may generate a multiplier effect that enlarges the impact of the loan. There are some studies that show women spending a majority of their income on education, diet, healthcare and clothing for the household whereas men ration a majority of their income for themselves. So helping women is a way to help women, men and children.

3. Getting skills

As women get the money, they will need to learn economic skills. Women will need to learn how to invest money, create and run a business,  make profit or accounting. Microfinance improves women's social capital and promotes gender equality through economic success.

4. Difficult of getting a loan from the bank

Women may be find more difficult than men to obtain credit and loans. Some banks still think women have less ability with economic.

5. Repayment results

All the microfinance business studies show that women use to return money more often and faster. Although, in accordance with Kiwa 97% of loans are repaid, the majority of the remain 3%  are men in a ratio 1:3. Women have promoted the efficiency and sustainability of these programs therefore microfinance helps women to be more efficient.

6. Women’s Rights

Providing women with equal access to financial resources helps the human rights issue of poverty reduction and the government’s responsibility of meeting the women’s rights. In regions where women's mobility is regulated by their husband, women have become more visible and are better able to negotiate the public sphere. Women own assets, including land and housing, and play a stronger role in decision making. In some programs that have been active over many years, there are even reports of declining levels of violence against women.

7. Equality

Helping women through microfinance promotes gender equality. Through these programs, women are now able to make strategic choices in their lives that require access to both material and social resources such as credit, money, education, and business knowledge. Women need to define goals, make choices and work towards. These actions can help them to increasing their status and active roles in their families and societies.