Abstract
The main focus of this study is to determine whether micro finance is an effective instrument in bringing empowerment, hence the main question is whether microfinance through SHG contributes to women empowerment and it is a focused study relating to empowerment of women which is goal 3 of MDGs. The review of extant literature on micro-finance reveals that the existing studies highlight the impact of SHG and microfinance on economic improvements in households and empowerment. In the light of above discussions, there is a need to study the entire impact of micro finance on empowerment-economic, social, political, managerial and psychological to ascertain whether micro finance through SHGs will help to achieve goal 3 of the MDG i.e. empowerment of women in India.
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