The last decade witnessed discussions about the overwhelming impact of microfinance in empowering women and fighting out the age-old gender discrimination. Ample number of success stories of women were quoted in this context. Many state governments, taking the cue, acted swiftly in identifying the ‘best fit’ model of Self-Help Group (SHG)-bank linkage program and implementing it. SHG federation model is one such improved model of microfinance. However, the changing times were also a witness to the ‘melt down’ of high expectations about the transformational effects of microfinance. Several doubts were raised about the genuineness of gender equity brought about by mere financial help. Disillusioned by the performance of microfinance in empowering women, it is now widely felt that a further probe is necessary about the process of empowerment that exactly takes place. The present paper attempts to study the impact of the program on SHG members, i.e., loan beneficiaries in the Ranga Reddy district of Andhra Pradesh. Respondents are divided into two groups, namely, micro-entrepreneurs and passive beneficiaries and the path of empowerment for both these groups is identified. Empowerment taking place in various domains is studied and it is concluded that the path of empowerment is different for each group.

After the emergence of third world countries, the problem of poverty has drawn the attention of policy makers around the world, as absolute poverty nullifies the effects of growth and prosperity. Unless these countries reach the level of the first and second world countries, their growth levels will not reach a balanced and sustainable state. Thus, absolute poverty of developing countries can be considered to be the most serious problem and it is being addressed by the respective governments. The programs and strategies taken by different governments might vary according to the nation-specific characteristics and objectives. Nonetheless, the enormous depth and width of the problem still leaves much gap that has to be filled up, therefore it attracts the policy makers around the world to come out with alternate measures to supplement and increase the efficacy of the efforts of governments.

The concept of ‘empowerment’ emerged out as a powerful alternate solution in the 1980s. Unlike the earlier measures designed by policy makers, it evolved from the women of economically deprived classes around the globe and produced magical results. The opinions of feminist writers were tailored to fit the development requirements. It was universally accepted that empowered beings become agents of self-development and engines for progress.

Entrepreneurship Development Journal, Women Empowerment, SHG Federations, Micro-Entrepreneurs, Different Pathways, Self-Help Group (SHG), NABARD.