ABSTRACT In most of the developing countries greater emphasis is being laid on need for empowering rural women and their active involvement in the mainstream of development. No development could be achieved in rural India on sustainable basis until and unless its women fold are developed and empowered socially and economically. To empower women government has introduced various schemes one among them is Self Help Groups. In India about 92% of these groups cover women. Micro finance is an effective tool in this Endeavour which leads to peaceful development. There is a steady growth in SHGs and millions of households are being benefited through Micro Finance. Indian experience in the case of Micro-finance and SHG is suitable strategy for against poverty and women empowerment.