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This book aims to introduce the reader to the vital problem of rural credit facing the country to day. The present pioneering and in-depth study of impact of Microfinance on rural people. The book is an evaluatory study which deals with Socio-economic development of rural population of SHGs and its relevance to microfinance from Formal Financial System. It provides the consolidated picture of latest information about the growth of SHGs, credit provides from MFIs, savings pattern of SHGs, social awareness activities and rural credit structure in rural areas. It also suggests guidelines for the healthy growth and working of rural micro credit system in under developed region. This book, it is hoped, would provide useful information and inputs to the academicians, planner administrators,government and students in the field of microfinance,rural development women empowerment and agricultural economics. It would also serve the researchers and others interested in updating themselves with formulate the latest microfinance policies in modern economic system.