Islamic Microfinance and Women Empowerment: A Case Study of Akhuwat Foundation

Abstract

This study analyzes the role of Islamic microfinance in empowering women. For this, fifty female borrowers who invested the loan in an income generating activity were interviewed. Questions were asked to find whether it has any impact on the material condition of female borrowers after using the loan, and how access to credit contributes to the empowerment of female borrowers. The findings show that, using the loan for an income generating activity, made women able to spend money on household expenses, health and education of the family. It was observed that microfinance had no impact on women's mobility and awareness level. Access to credit cannot be expected to lead to women's empowerment unless it is accompanied by awareness of rights. The study highlights that the purpose of the loan should not only be to improve the material situation of women, but also to improve
their status and position in society.