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The impact of microfinance on the rural women has been examined in this study. The study revealed that majority of the SHG members were middle aged, married, and belonging to nuclear families from backward castes. The impact analysis on the various parameters revealed that the total percentage change in income was 45.59, employment was 112.48, the asset position of members after joining the self-help group was 53.43 and the consumption change in member household was 25.8 per cent. The study on the investment and savings pattern of member households after joining the SHGs showed that they came under high investment and savings category and the percentage change was 20 and 264, respectively. The regression analysis revealed that the income of members increased by 0.50 from one rupee investment, savings increased to Rs 4.92 and one day employment increased the income by Rs. 40.37. The major constraints faced by members were conflicts among group members, improper savings or procedures involved and lack of training or skill upgradation as moderate problems. Through the SHGs women were socially and economically empowered.
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