Today, micro finance has garnered significant worldwide attention as being a successful tool in poverty reduction .One such form of micro finance has been the development of the self –help movement which has culminated in a practice of small groups of people have formed into groups of ten to twenty and operate a savings- first business model whereby the embers savings are used to funds loans. Above half of the Indian population still doesn’t have savings bank account and they are deprived of all banking service. Poor also need financial services to fulfill their needs like consumption, building of assets and security of life. Microfinance institutions serve as a supplement to banks and in some sense a better one too. These institutions not only offer micro credit but they also provide other financial service like savings, insurance, remittance and non financial services like individual counseling , training and support to start own business