The dissertation submitted in partial fulfillment of the requirement for the award of bachelors degree of applied accounting: auditing and information systems. BAA-AIS MCA 2017 MA 1174

Micro-finance schemes which provide financial services such as micro-credit, insurance and savings to the poor have become popular tools to fight against poverty in Malawi. The popular assumption is that enabling poor households begin small and medium scale business which would enabling poor households with access to credit helps household begin small and medium scale business which would enable them to improve their income and eventually escape poverty. The main objective of the research was to assess the impact of micro-finance scheme on poverty reduction among the women's households , to evaluate the effects of micro-finance on women empowerment, children's education and their health status and to determine whether micro-finance schemes can help women to acquire new assets . The study used a quantitative research approach and a questionnaire was used to collect data from 50 women clients who were selected through purposive sampling. The results indicate a positive and significant impact of micro-finance on household's income , children education and their health. The results also showed that women are now able to acquire assets on their own and they have been empowered both socially and economically.

However, the researcher has made four recommendations to the study. Firstly, for micro-finance to be a viable strategy for sustainable poverty reduction, it should be done on program outreach and depth. The program has to be accommodate the poor in the country. There is also a need to encourage a lot to involve themselves in micro-finance program and become financially independent since it has been proven that women are more likely than men to invest the increased income in the household and family well-being. The government should arrange an enabling environment for the business by keeping infrastructures in place that link more remote areas to the markets. Lastly, there is a need for VFM to continue to support the women with effective training's in financial and operation guidelines so as to broaden the knowledge among the women borrowers on how to commit loans into productive activities.

The research concludes that indeed micro-finance has the potential to reduce poverty especially in increasing the level of income of women and also that the provision of credit to the women has contributed to the expansion of their businesses in the township.