Analyzing the Impact of Microfinance on Women Empowerment through Self-Help Groups in Selected Northern Districts of Tamil Nadu

Self-Help Groups (SHGs) have emerged as a grassroots approach to financial inclusion and socio-economic empowerment of women in rural India. This study examines how microfinance influences women’s empowerment in selected northern districts of Tamil Nadu. Using a mixed-method approach that combines surveys and interviews, the research develops a weighted Empowerment Index based on indicators such as income control, decision-making participation, mobility, education, and social participation. EI(P
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) The proposed model is compared with established frameworks such as Kabeer’s model, WEAI, EEI, and LEI. Results show that SHG-based microfinance significantly improves women’s empowerment, and the proposed PCA-based model provides a more accurate and locally relevant assessment.