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Right from mid-eighties of the past century, microcredit has become a key strategy for poverty alleviation and empowerment of women in Kerala. Formation of Neighbourhood Groups (NHGs) and Self-help Groups (SHGs), and providing microcredit through all possible channels to the members of the groups have become a very popular poverty alleviation and women empowerment model in Kerala. Micro studies examining the intricacies of microcredit dispensation and its impact on the empowerment of women in Kerala are plenty. However, full-fledged macro studies examining the matter in depth are very few. The paper examines the impact of microcredit dispensation on the economic empowerment of women beneficiaries. The study finds that after joining the women groups and receiving microcredit, there is significant improvement in the economic situation of women in Kerala.
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