Poverty is widespread in India, where the poor lack basic resources and opportunities. The rural poor and women in general have a harder time generating income or obtaining resources because of the cultural environment, lack of education, and geographical location. Thus there needs to be other avenues to help lessen poverty as a whole and target women and poor communities to help them generate income.

In recent years microfinance has spread throughout India, making an impact on the lives of the poor by providing them with microcredit to start their own small businesses, so they can generate income and provide for their families. Many of these loans are distributed to women in rural areas providing them with tools to become self-sufficient and independent. Indian women are often considered as second class citizens in India and microfinance has the capability of empowering women by giving them the opportunity to be heard and the means to make educated decisions.

This thesis is comprised of five chapters that examine the level of poverty in India, analyze the microfinance industry, and explain the impact of microfinance in India and its role in empowering Indian women. Chapter one gives a background of the level