This study explores the role of microfinance in promoting financial inclusion through Self-Help Groups (SHGs) in the Hooghly district of West Bengal, focusing on selected urban and rural areas. Financial inclusion is vital for economic development and poverty alleviation, ensuring access to financial services for underserved populations. In Hooghly, traditional banking systems often fail to reach rural and low-income communities due to infrastructural and socio-economic barriers. Microfinance, facilitated by Microfinance Institutions (MFIs), has become a critical tool in bridging this gap by offering small loans, savings, and insurance products tailored to the needs of low-income individuals. SHGs, typically comprising 10-20 members, predominantly women, play a significant role by pooling savings and providing mutual support and credit access. These initiatives support the economic activities of SHG members, enabling them to start and expand small businesses, particularly in agriculture and small-scale enterprises.

Moreover, microfinance has significantly empowered women in SHGs, improving their social status, decision-making power, and financial independence. This study aims to provide insights into the multifaceted impact of microfinance on SHGs and their members, informing policymakers and development practitioners on enhancing financial inclusion and fostering sustainable economic growth in Hooghly. The findings highlight the need for continuous support and innovation in microfinance delivery to achieve broader socio-economic development goals and improve the well-being of Hooghly's residents. In Hooghly District, rural members of SHGs perform better in all aspects of microfinance and microcredit than urban members of SHGs through financial inclusion.

On the other hand, it has been detected that microfinance and microcredit are used more by the respondents in the family business than personal needs by the members of the SHGs.