The Impact of Microcredit on Women's Empowerment and Poverty Reduction: Evidence from Sirajganj District, Bangladesh

Microcredit programs serve as a crucial development strategy for empowering women and reducing poverty, particularly in underdeveloped countries. Women's empowerment is essential for fostering economic and social progress, and access to financial resources plays a significant role in this process. This study examines the relationship between microcredit and women's empowerment in Sirajganj sadar Upazila of the Sirajganj district. A total of 100 respondents were selected as a representative sample to assess the impact of microcredit on various empowerment indicators. Key metrics included poverty reduction, freedom of speech, mobility, and participation in decision-making. The study’s findings reveal a positive correlation between microcredit participation and these indicators of empowerment. Women who received microloans reported increased economic stability, greater confidence in expressing their opinions, improved ability to travel independently, and enhanced involvement in household and financial decisions. Furthermore, the study highlights how microcredit programs have contributed to improving living standards by providing women with financial autonomy and business opportunities. The findings suggest that microcredit not only supports economic growth but also fosters social transformation by enhancing women's agency and self-sufficiency. These insights underscore the importance of expanding microcredit initiatives as a means of promoting gender equality and poverty alleviation. Received: 9 April 2025 / Accepted: 10 July 2025 / Published: 18 July 2025