Empowerment of women has a decisive role in eradication of poverty through micro finance. Women's participation in income generating activities is believed to enhance their status and role not only in the family but also in the society. At the end of the ninth plan, various schemes were implemented to reduce poverty and to promote gainful employment. One such attractive scheme with less effort is that of the self help groups (SHG's). These SHGs have been considered as an effective tool to eradicate poverty through microfinance and spurt up rural development. Microcredit helps women to organize their own business and production units. The women are empowered commendably through microfinance. These enhance their household decision making ability, managerial capacity, independence and self motivation. Despite various hardships the beneficiaries are confident and a model to other women. Therefore, there is a need to promote more number of SHGs, ultimately to reach all the poor families in the country and in each and every habitat.