Micro finance is a collective term used for financial intermediation service to low income group and poor customers. Service offered credit facility, saving account, money transfer, remittances, insurance and even investment.

Reserve Bank of India defined Micro finance as “Micro finance is an economic development tool whose objective is to assist the poor to work their way out of poverty. It covers a range of service which included, in addition to the provision of credit, may other service such as savings, insurance, money transfer counseling, etc”.

The Self help groups work in democratic way. The maximum number of members in a group is 20. One among them is selected as animator and 2 more members are selected as representatives. The animator is selected for 2 years. The meeting of the group takes place every week. The group discusses about their savings, rotation of the funds, repayment of loan and social and community action programs.

KEY WORDS: Micro credit, rural women, self help groups