ABSTRACT

 The study examined the effects of microfinance services on economic empowerment of rural women in Abia State. It specifically looked at the socio-economic characteristics of the beneficiaries of microfinance services, percentage of women beneficiaries of microfinance services, the effect of microfinance services on economic empowerment of rural women and the problems encountered by the beneficiaries. Primary and secondary data were used in this study. The list of microfinance service beneficiaries obtained from the institutions formed the sampling frame. Simple random sampling was adopted in selecting 108 beneficiaries. Data were collected using well structured questionnaire and oral interviews for the primary data, while secondary data were collected from documentations of the microfinance institutions. Data analysis was carried out with the use of such statistical and econometric tools like frequency tables, percentages and multiple regression analysis. The results showed that the mean age of the beneficiaries was 44 years. indicating that they are middle aged. The stu4y showed that majority of the beneficiaries were literate, married and hive farmed for many years. The indexes measures of economic empowerment indicated that microfinance banks used loans and savings services to make significant improvements in the wellbeing of the clients through economic empowerment. Results show that the beneficiaries income and land holding increased substantially. Regression result showed that age, amount of loan received, savings deposit. years of farming experience; numbers of years spent in school and membership of cooperative societies were significant variables that had positive effect on Economic Empowerment of Rural Women. More so, majority of the beneficiaries identified high interest rate on loan, slow loan processing period and short loan repayment period as their major constraints in assessing microfinance services. The microfinance institutions should employ seasoned staff for faster loan processing. Group lending through cooperative societies should be encouraged as this wll reduce the stress of looking for guarantors and also reduce high over head costs as well as establish good loan culture on savings.