In a climate where the drying up of grants is forcing microfinance institutions to emphasize objectives such as profits and growth, this study looks at the impact of women’s ownership of microfinance loans on their empowerment. Using data from a survey of 600 women from microfinance households in Sri Lanka’s Kurunegala District, the empirical investigation finds that owning the loan increases a women’s control over the loan-assisted project, and through that, has a significant and positive impact on her level of empowerment. In particular, greater control over the project is found to increase her economic power and her involvement in major family decisions.