The present study has examined the impact of micro loans on women‟s economic activities. It
has specifically highlighted how women‟s income generating activities through small loans
help to improve their status in household and local communities. This study is based on
eleven semi-structure interviews, two focus group discussions and field observation. The term
„empowerment‟ including its three dimensions: identity, agency and critical consciousness,
has been applied as a theoretical lens to further clarify the informants‟ views on the role of
micro loans to improve their household and community role and responsibilities.
Findings of the empirical study have shown that the access to small loans for income
generating activities have positive impact on women‟s empowerment. Women‟s participation
in micro credit has increased their mobility contributing to the change in the social values.
Further, women‟s active participation in local issues mobilization has changed community
perception on women‟s roles and responsibilities. However, in some cases, under the
pressure of other family members, small loans have been used in purposes other than income
generating activities making already weak women more vulnerable.