Microcredit has emerged as an important tool that promotes financial inclusion and brings about an improvement in the socio-economic status of women. This study looks at how micro-credit helps women become more influential players in society and the economy in Ramgarh Cantt District, Jharkhand. A structured questionnaire was used to collect primary data from 200 women beneficiaries of Self-Help Groups (SHGs), microfinance institutions, cooperative societies, and bank-linked credit programmes through quantitative, descriptive and analytical research design. The analysis of the collected data involved utilising descriptive statistics, Pearson correlation, Chi-square test, and other inferential statistics. As revealed by the results, participation in micro credit programme have positive impact on increased household income, regular saving, self-employment, entrepreneurship, and financial stability. The women also reported increased participation in household decision-making, greater confidence, improved mobility, stronger leadership abilities and participation in community activities. Statistical analysis revealed a strong positive correlation between participation in the micro-credit programme and socio-economic empowerment of women (r = 0.71, p < 0.001). A significant association was noticed between the length of SHG membership and household decision-making (χ² = 18.46, p = 0.001). Beneficiaries have to face certain challenges. These challenges are inadequate loan amount, pressure to repay the loan, low financial literacy, weak market linkages, and delay in loan disbursement. As per the study, micro-credit stimulates women’s socio-economic empowerment when backed by entrepreneurship training, financial literacy, institutional support and access to market. According to the findings, the information can help policymakers, financial institutions and development agencies in enhancing women-centred financial inclusion and sustainable livelihood programmes.