Abstract

Financial Awareness as a Catalyst for Women's Entrepreneurial Growth: Examining the Impact of NBFC-MFIs Loan Terms on Women Micro-Entrepreneurs

Dr. K. R. Malarchitra

Volume: 16 Issue: 3 2026

Abstract:

Microfinance Institutions (MFIs) have spread across India, but despite their widespread operations, the majority of people remain unaware of their penetration and outreach. The study analyses the role of microfinance in poverty mitigation by studying the key indicator of awareness. MFIs can prove to be an effective tool for sustainable development, as the awareness and branch outreach of MFIs is increasing year after year. Non-Banking Financial Company–Microfinance Institutions (NBFC-MFIs) provide financial services to low-income women who often lack access to formal banking systems. Awareness of loan terms and conditions, such as interest rates, repayment schedules, processing charges, penalties, and loan tenure, plays a crucial role in ensuring effective utilization of credit. The present study examined the level of awareness regarding the terms and conditions of loans provided by NBFC-MFIs and its impact on the socio-economic status, business performance, and loan profile of women micro-entrepreneurs. The findings indicate that awareness of loan-related aspects such as interest rates, repayment schedules, loan tenure, processing charges, penalties, and other borrowing conditions plays a significant role in determining the effectiveness of microfinance services.

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