Rajasthan has a very rich history and culture. It is at the forefront of tourist destination in India. It has historically been a patriarchal and feudal society where gender discrimination has been a concern. This has drastically affected women's health, financial status, literacy level and political involvement. The problems are further aggravated by high levels of seasonal migration. For many men in Rajasthan, migration is required since rural parts of Rajasthan often lack a sufficient economy to provide income for a family year-round. The task of improving human development in a scenario of shrinking resources, ensuring sustainable livelihoods in an eco-friendly manner and above all ensuring the participation of the poorest of the poor, especially women, dalits and tribals -these are important areas of it. The government subsidies to poor are critical for their survival needs but for sustainable economic development of poor, public investment in infrastructure and access to financial services are very crucial. It has undertaken several programs for eradicating poverty in the past such as IRDP, TRYSEM, DWCRA, SITRA, MWS etc. The State has also garnered financial assistance from World Bank for several development programs. Under this context, microfinance programmes in Rajasthan and elsewhere clearly indicates the change in income level of beneficiaries; reduction of dependence on moneylenders; increase expenditure/ investment on children education, health, agricultural inputs, increase in production and most important the increased awareness and self confidence among poor. This study is the tool of enlighten thoughts of rural development by microfinance.