Evaluating Repayment Rates And Sustainability Of The Microfinance Model In Empowering Women Entrepreneurs

Abstract

This study focuses on evaluating repayment rates and the sustainability of the microfinance model in empowering women entrepreneurs. Microfinance has emerged as a key tool for financial inclusion by providing small loans and financial services to women who lack access to formal banking systems. The study examines how effectively women entrepreneurs utilize microfinance loans and their ability to repay them regularly.
The research also analyzes the relationship between repayment behaviour and the sustainability of microfinance institutions (MFIs). A high repayment rate is often considered an indicator of success; however, this study highlights that repayment alone does not always reflect true economic empowerment. Factors such as income stability, business performance, financial literacy, and social conditions significantly influence repayment patterns.Using both descriptive and analytical methods, the study finds that while microfinance contributes to increased income and financial independence, many women still face challenges in repayment due to irregular income and financial constraints. The study concludes that for microfinance to be truly effective, it must balance financial sustainability with genuine empowerment by providing not only credit but also training, support, and flexible repayment systems