Microfinance is perceived as an effective tool to empower women especially those who are deprived of accessing financial services. However, literature provides conflicting evidence and demonstrates that empowerment may not, or may only be partially achieved especially in Muslims community. This study intended to examine how access to Amanah Ikhtiar Malaysia (AIM) productive loan affect Malay Muslims women in urban area. A quasi experimental approach was conducted through a cross sectional survey distributed to 500 of old and new clients. The analysis shows significant effects on participation in (AIM) microcredit on household decisions making and access to health insurance.
