MICROFINANCE AND WOMEN'S EMPOWERMENT IN VELLORE DISTRICT OF TAMIL NADU WITH SPECIAL REFERENCE TO PROGRESS, CHALLENGES, AND POLICY RECOMMENDATIONS FOR SUSTAINABLE RURAL DEVELOPMENT - AN ASSESSMENT

This study explores how microfinance helps empower rural women in Tamil Nadu by improving their access to financial services, increasing their income, and reducing poverty. Microfinance provides small, collateral-free loans that women can use to start businesses, buy household items, or improve their homes. Through Self-Help Groups (SHGs) and government support, many women have gained confidence, decision-making power, and economic independence. Microfinance also encourages women to save, participate in community activities, and take leadership roles in local governance. Despite these positive changes, challenges remain, such as over-indebtedness, high interest rates, social barriers, and low financial literacy. Many women face difficulties in fully using banking services due to cultural norms, limited mobility, and lack of awareness. The study highlights the progress made in Tamil Nadu and suggests that combining microfinance with training, skill development, and responsible lending can lead to more sustainable benefits. Strengthening policies, promoting digital banking, and involving community organizations can help overcome existing problems. Overall, microfinance has the potential to significantly improve the socio-economic status of rural women and contribute to overall rural development. To achieve lasting progress, it is important to address challenges and create an inclusive financial environment that supports women’s empowerment and community growth. From this standpoint, the study investigates important and swiftly changing issues that are gaining prominence in the modern, globally connected world.