Impact of Loan Cycle on Empowerment in Micro Finance

The present study basically analyse the level of empowerment of people especially women in different loan cycle in the SHG loan. The study specifically examined the level of empowerment through microfinance in the region of North Kerala. Prevailing interest rate and repayment period of loan is supportive to the better utilisation of loan and thereby it brings empowerment. SHG members are participating in rural development, sustainable development, agriculture and commercial investment and thereby they are getting empowered. In the present scenario caste system and religious regulations are not supporting the women empowerment. By getting financial support to the poor automatically the whole society will get empowered. Reinvestment, loan system and financial support have significant impact on empowerment. The results of the study reveal that status of empowerment will vary according to the level of loan cycle. Higher loan cycle leads to higher empowerment.