Loans to poor people by banks have numerous limitations including absence of security and high working costs. The Bank for Agriculture and Rural Development took a gander at several models for offering financial services to the unbanked, especially women, and chose to explore different avenues regarding an altogether different model, presently prevalent known as Self-help Groups. It involves commercial banks, territorial provincial banks and helpful banks in its operations. SHGs are often formed and sustained by NGOs and simply in the wake of accomplishing a specific dimension of development in terms of their inner thrift and credit operations, they can save, and furthermore seek credit from the banks. In this methodology, a small group of women can form their own little scaled down bank, self-governed and oversaw, and make links with banks, NGOs and banks. As a result, microfinance was produced as a choice to furnish loans to poor people with the objective of making financial inclusion and equity.