In India, microfinance has experienced enormous growth over the years and is now well-known due to the many ways it helps the countries impoverished. Two distinct models, the MFI-bank model and the SHG bank linkage model, are primarily used to deliver microfinance services. Due to the acceptance of the SHG-bank linkage model by formal financial institutions such as Commercial Banks, Regional Rural Banks, and Cooperative Banks, it has emerged as the more dominant and commonly recognized model among these two. With a focus on the SHG-Bank linkage paradigm, the current paper examines the development of microfinance in Rajasthan. By creating a model for a self-help group-bank linkage program where they give the group small loans without requiring the group to deposit any collateral security, NABARD has made significant headway. This study's goal is to assess the microfinance program's effects in the state of Rajasthan. The findings of the study demonstrated that the micro financing program has been acknowledged as one of Rajasthan state's most successful and quickly expanding programs.

Keywords: Microfinance, MFI-Bank Model, SHG-Bank Linkage Model, NABARD.