The role of microfinance and microcredit in women poverty reduction: an application in Afghanistan

Microcredit, aims not only at helping poor people but also for them to establish their own businesses. Microcredit is one of the measures used in fighting poverty in many countries. Poverty has been one of the most pressing issues from the past until now. Poverty felt deeply in rural areas have affected women putting them under social and economic pressure. Many solutions have been offered in mitigating the poverty many women go through in most countries which microcredit is one. In this study, the basic knowledge of microfinance programme targeted at Afghan women is explained. The study aimed to determine the effect of microcredit programmes that have impacted on the lives of Afghan women; also to determine what kind of changes that were made in their house budgets, social and psychological lives. Data was collected through interviews. Results of the analyses showed that women who participated in microcredit programs are generally happy with this practice and microcredit has significant positive effects on their economic and social lives. The search shows that 10 women who participated in the microcredit programme used microcredit for self-reliance, feel good psychologically and mentally, feel economic independence from their husbands and can also buy what they want without asking their husbands, and don't struggle with poverty. Keywords: Poverty Alleviation, Microfinance, Principles of Microfinance, Microcredit