Journal Press India^®

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Microfinance has played an important role in building economic and political capacity of the members of self-help groups, especially women, and thereby enhancing empowerment. The paper examined the role of SHG micro-credit as a tool of capacity development and women’s empowerment in rural areas of Hamirpur and Una districts in Himachal Pradesh, India. It is based on primary data collected from a random sample of 518 members. The findings reveal the sample respondents to be possessing poor human and economic capabilities due to poverty. It also depicts that rural women, after joining the group, get access to or enjoy all kinds of social amenities like medical facilities, water supply services, and schools for children and there is an increase in their self- confidence, communication skill, decision-making, skill and transport facilities. For the success of the scheme, training is an important part that contributes to make the group viable. Training develops the necessary skills among the members of self-help groups to run the economic activity effectively. Hence, it is important to know the status of training and capacity building initiatives taken. In this regard the responses of respondents have been analysed.

Keywords

Poverty; Microfinance; Training; Capacity building; Self-help groups

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