Article History Keywords Microcredit Empowerment Income Health conditions Decision making. Rural Women This paper will explore some of the ways in which microcredit have improved the empowerment of women in Chittagong, Bangladesh in terms of change in annual family income, change in health conditions change in decision-making ability and change in purchasing capacity. This was a quantitative research and using a survey method. Data was collected from a sample of 113 borrowers of microcredit

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... s. The AMOS software developed for analyzing the Structure Equation Modeling (SEM) and SPSS was used. The findings revealed that decision making capacity and family income have a significant impact towards empowerment of women. The findings supported the results from some earlier studies and also bring out several new ideas such as the importance of family income. The findings have significantly contributed to the advancement of knowledge in the empowerment of women borrowers in Chittagong, Bangladesh. The implications were in the areas of encouraging poor women to increase their self-esteem and self-worth, and thereby empower them. It is recommended that microcredit lending be continued and suitable policies and legislation be implemented to ensure successful implementation. The results of this study will add to the current body of knowledge as well as assist in creating foundational solutions to ensure successful outcomes arising from microcredit loans in Bangladesh. Contribution/ Originality: The paper's primary contribution is finding that decision making capacity and change in family income of rural women have a significant impact on empowerment of women in Bangladesh. This paper argues that despite the inconsistencies in research, microcredit can be a useful empowerment tool and still continues to play a vital role in Bangladesh.