Abstract:
The aim of the study is to address these issues to empower the women through micro credit in selected districts
of Amhara region. There was evidence that micro credit brings about changes in the family well-being, spending
habit, health awareness, participation in decision making, improvement of social status. Micro finance Institution
is a formal financial institution in Ethiopia which helps in availing financial services such as interest free loan
without collateral to the rural poor. Validated scale measures were presented in a cross-sectional field study
survey of 525 rural women was taken for the study purpose in Chilika, East Dembiya, and Lay Armachiho of
Amhara Region, Ethiopia. SMART PLS 3 version was for analyse Structural Equation Model and PLS Path Model.
The study shows that the assessment of Intervention effect relationship is the relationship between women
empowerment and Micro credit. Thus, Women empowerment is improved when there are relationships between
the improvement in income aspects and their improvement in standard of living. The policy makers can focus on
the following subjects and plan suitable policy to strengthen the impact of Women Empowerment. The male
family head of the families can play a supportive role of female members to improve the performance. The
required training related to the business can be provided to increase their marketability of their product and
services. NGOs can support women members to enhance their performance in the aspect family as well as
business apart from credit. This exploratory research is novel, examining the impact of women empowerment
through micro credit. Respondents from Amhara region, Ethiopia came from the origins of micro credit, and are
seldom sampled. Despite being confined respondents with few alternatives, micro credit borrowers of women are
very sensitive. This micro finance service is also expressively related to empowerment of women.
