The main purpose of this research is to investigate the impact of Microfinance on the development and performance of Small and Medium enterprises around New Delhi city in India. Thus, the study will evaluate the several factors which have significant impact on development and performance of Small and Medium enterprises such as utilisation of capital loans provided by Microfinance institutes and the relationship between credit terms and liquidity level. The fundamental objective of this study is to assess the impact of Microfinance on the development and performance of Small and Medium enterprises (SMEs) around New Delhi city in India. A simple random sampling technique will be employed in selecting the 100 SMEs (around New Delhi City in India) that constitute the sample size of the research. A structured questionnaire survey will be designed and distributed to facilitate the acquisition of relevant data which will be used for analysis. A Descriptive statistical model will be applied to the date which will generate graphical charts and illustrations analysis.