One of the greatest challenges before Indian sub-continent which accommodates more than one-third of its population living below poverty line. This paper examines the impact of microfinance on income and employment on socially disadvantage group in particular. The study primarily based on the field survey conducted by the author in various district of Kumaon Region (Uttrakhand). Both participants and non-participants are taken into consideration for better understanding of the impact of microfinance. Comparison of member and non-members socio-economic condition is reported and it was found that non-participants are the most vulnerable and are at a disadvantage position than their counterparts. Probity-model is applied to examine the household specific factors explaining participation in the program.

KEYWORDS: Below-Poverty Line, Socio-Economic, Probity-Model.