Green Microfinance and Women’s Empowerment: Mediating Role of Financial Literacy

Authors

Keywords:

Financial literacy, green microfinance, microfinance institution, women empowerment

Abstract

This study examines the influence of green microfinance (GMF) on women's empowerment (WE) through the mediating role of financial literacy (FL), integrating human capital theory, capability approach, and experiential learning theory. Based on a survey research design, data were purposively collected from 250 women affiliated with three leading microfinance institutions (MFIs), each having at least a minimum participation period of six months. Data were analyzed using Structural Equation Modeling. The findings revealed that GMF significantly influenced FL but did not have a significant effect on WE. Moreover, the relationship between FL and WE was supported, and the mediating role of FL in this relationship was also confirmed. This indicates that GMF fosters empowerment primarily by enhancing women’s financial knowledge and decision-making abilities. The study extends microfinance and feminist empowerment theories by introducing the environmental dimension of GMF and positioning FL as a key mediating factor.

Downloads

Download data is not yet available.
Abstract
0
PDF
0

Author Biographies

Prashanna Sedhai, Kathmandu Model College, Tribhuvan University, Nepal

Prashanna Sedhai: Driven by curiosity and a commitment to excellence, I have built a strong foundation in leadership, communication, and event management during my BBA studies, from which I proudly graduated from Kathmandu Model College. I have successfully led major institutional events, including a Job Fair, exhibitions, and panel discussions, and earned distinctions such as winning Marketing Lingo and placing runner-up in Brand War. These experiences have shaped me into a confident, analytical, and purpose-oriented individual.

Surya Balami, Faculty, Kathmandu Model College, Tribhuvan University, Nepal

Surya Balami: An educator and researcher with over a decade of teaching bachelor's and master's students. He supervises projects and theses, has published three peer-reviewed articles and a school marketing textbook, and runs workshops on SPSS, AMOS, and case-study analysis. Skilled in SEM, mediation/moderation, and advancing R proficiency, he mentors students and professionals to apply rigorous data analysis and research methods

Nabin Pandey, Faculty, Kathmandu Model College, Tribhuvan University, Nepal

Nabin Kumar Pandey: A dedicated and enthusiastic educator with more than 15 years of teaching experience in finance and accounting. He possesses profound knowledge as a share market analyst, integrating practical market insights into his teaching, and has published a peer-reviewed article. In addition to academic instruction, he conducts training programs on accounting package software, equipping students and professionals with industry-relevant skills. His commitment to education and practical learning has earned him strong professional respect.

Cover IDJINA

Downloads

Published

2025-12-31

How to Cite

Sedhai, P., Balami, S., & Pandey, N. (2025). Green Microfinance and Women’s Empowerment: Mediating Role of Financial Literacy. Interdisciplinary Journal of Innovation in Nepalese Academia, 4(2), 185–203. Retrieved from https://www.nepjol.info/index.php/idjina/article/view/88790

Issue

Vol. 4 No. 2 (2025)

Section

Part I: Management, Social & Computer Science

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This license allows reusers to copy and distribute the material in any medium or format in unadapted form only, for noncommercial purposes only, and only so long as attribution is given to the creator.