Microfinance is one of the most visible innovations in anti-poverty policy in the last half-century, and in three decades it has grown radically. Microfinance helps to the rural women to do their own business. Microfinance plays a key role to reduce poverty and also play the important role to increase the employment in the rural area. Microfinance is a tool which is helping in abolishes poverty, empower women & feminine Development. Microfinance helps abolish poverty by income generating activities, creating job enabling families to obtain health care, provide education to the children, empowering women to make the fulfil their requirements. Four important dimensions of microfinance are: savings, credits, money transfers and insurance. Microfinance is a very important tool to improve livelihoods at the base of pyramid. Access to finance has proven to reduce poverty and enable the poor build assets, increase incomes and reduce their vulnerability to economic stress. RBI established an Agriculture Credit Department to promote rural credit way back in 1935. Initially the government tried to promote credit to rural people through establishing the cooperative institutions and strengthening them. Microfinance has also focused on women as the recipients of loans. Empowerment of women is a major benefit achieved through Microfinance. Women are the largest borrower of microfinance and women generally tend to direct additional income towards better nutrition, education and healthcare for the family. The main agency for providing Micro-credit in India is banks. A Self-employed Women’s Association (SEWA) at Ahmadabad in 1970 developed the idea of ‘women and Micro-finance’. It is a trade union of poor and self-employed female workers. Through the help of microfinance, business person in developing areas and impoverished communities may survive, operate, and also thrive by creating more employment opportunities for the peoples. The microfinance services have perfectly positive impacts on the nation’s economy as well as on the nation’s growth & agriculture sector.

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Keywords: Poverty, Women Empowerment, Microfinance Institution, NABARD.