From the very last few decades poor people and socially marginalized people have less access to the high quality financial products and services. It does not include only banking services. The very important step to bring economically exiled people within the crease of financial sector was the development of microfinance in India. This is in early 1980’s had been evolved with an effort of forming informal Small Help Group (SHG). The main purpose of SHG is to provide easy access of all kind of financial services to needy. The term microfinance mainly refers to both credit and savings, small scale financial services that are extended to poor in all kind of areas. The SHG-MFIs and bank linkage is an effective way for needy people to use financial services with ease. This paper tries to highlights the position of micro finance in India.