Abstract: The strategy of giving micro-loans to the youth for their empowerment more especially the poor youth in the rural areas is very important for the youth as well as the country as a whole.The research studies which have been done on youth empowerment indicates that at least there has been some improvements on their standard of living and that at least some degree of empowerment has taken place in their lives. On the other hand there has been limitations in defining empowerment in economic terms only but the researcher here proposes that its multidimensionality meaning of the concept should be adopted that is, it’s meaning in economic, social and political terms. This review of literature has captured the use of power theories that is: power over, power within, power with and power to, at the same time the researcher has applied the Resource, Agency and Achievement theories to explain the empowerment concept of the youth. Finally the researcher has developed a simple conceptual framework where Micro-credit is an independent variable, empowerment as a dependent variable and intervening variables as: culture, economic conditions, and levels of education.