Micro finance, which is used as an instrument to eradicate poverty, refers to a system of making financial facilities available to those sections of the society that otherwise do not have the access to formal financial institutions. Micro Finance has become an age old concept. But it’s importance can be felt in the current economic scenario where the inequalities of income are still existing. This paper first highlights the meaning of micro finance and financial inclusion. It then studies the two important methods through which the micro finance facilities are being provided to those in need. These two measures include Self Help Group Bank Linkage Programme introduced by NABARD and the role of Micro Finance institutions. With the help of data, this paper analysis the amount of loans disbursed to the various beneficiaries under these two alternatives.

KEYWORDS: Micro Finance, SHG-BLP, Micro Finance institutions (MFIs).