WOMEN EMPOWERMENT THROUGH MICRO CREDIT USING GRAMEEN BANK SYSTEM

Abstract

This paper discussed the process of women empowerment through micro credit using Grameen Bank System. Poverty is not only in the sense of the condition of low income or economic inability, but furthermore is welfare resources exclusion which resulted in a group of people who unable to reach facilities of health, educational, are not able to obtain basic rights, have no pride, confidence, and so on. Women are mostly experience poverty and powerless to decide their own life’s choices. Women often have difficulty in getting facilities and a decent living as a man. This condition marginalizes women’s rights in case of social and economy. In addition to its economy background, women are also limited in gaining access to information, education and political participation. Microfinance is a tool that provides loans in a small amount to poor families in order to assist them doing productive activities and grow their small businesses. During this time, the poor do not have access to credit from conventional banks because they do not have money or goods that can be used as collateral or guarantee. Microcredit are usually offered without collateral to individuals or through group savings and loans. Microfinance clients are people with low incomes who do not have access to formal financial institutions such as conventional banking. Women empowerment through micro credit aimed to open women’s financial access. Women are the target of microfinance because of characteristic and her nature. Microcredit using Grameen Bank System is one form of microfinance institutions that distributes capital to the poor in order to be used as capital asset in running their productive activities where women as the target. Giving training and broaden skills to poor women are one of the stages of this program.  Keywords: poverty, micro finance, women empowerment.