Micro Finance is defined as, financial services such as Savings Accounts, Insurance Fund & credit provided to poor & low-income clients so as to help them to rise their income & thereby improve their standard of living. Micro finance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services.

Major Features of Micro finance.

• Loan without security 
• Loans tp people who live BPL (Below Poverty Line)
• Even members of SHG may get benefit from Micro Finance 
• The maximum limit of loan under micro finance is relatively small amount. 
• The terms and conditions given to poor people are decided by SHG.

For some, micro finance is a movement whose object is a world in which as many poor to have permanent access to an appropriate range of high-quality financial services, including not just credit but also savings, insurance, and fund transfers.

Many of those who promote micro finance generally believe that such access will help poor people out of poverty. For others, micro finance is a way to promote economic development, employment and growth through the support of micro entrepreneurs and small businesses.