Conference on Inclusive Growth and Microfinance Access, Banaras Hindu University, January 2011. Role of Self Help Groups through Micro-finance for poverty alleviation and Micro- Entrepreneurship of women KARIMZADEH, MAJID. PH.D SCHOLAR.DEPARTMENT OF ECONOMICS. ALIGARH MUSLIM UNIVERSITY. ALIGARH. NEMATINIA, GHAYOUM. PH.D SCHOLAR. DEPARTMENT OF SOCIOLOGY. BANARAS HINDU UNIVERSITY. VARNASI. KARIMZADEH, MASOUD. M.A. ECONOMICS. ABSTRACT A majority of microfinance program target women with the explicit goal of empowering them. There are varying underlying motivations for pursuing women empowerment. Some argue that women are amongst the poorest and the most vulnerable of the underprivileged and thus helping them should be a priority. The main benefits of micro-credit appear to be reduced vulnerability of the poor to adverse circumstances, increased consumption in the same group and empowerment of women. Fortunately, micro-finance practice in India like some other countries has much to offer to the rural population. These include poverty alleviation, livelihood promotion, developing the local economy, gender empowerment, building organizations and changing wider systems and institutions within society. SHG- banking linkage model is an important model of micro-finance which helps their members to start their own business. Also SHGs in rural area have empowered illiterate and poor women by linking them to the mainstream banking system and involving members in Micro-Entrepreneurship activities. Development of Micro-Entrepreneurship can help reduce the problem of unemployment and several social problems in the society that go with it. It ultimately helps in sustaining the process of development of the nation. This paper tries to link Micro-finance, Self-Help Groups, and Micro-Entrepreneurships of women and makes an attempt to review Indian experience in the case of Self-Help Groups and Micro Finance to show up the importance of Self-Help Groups for Poverty alleviation and empowerment of women through Micro-Finance. Keywords: Self-Help Groups, Micro-Finance, Micro-Entrepreneurships, poverty alleviation. Introduction In recent years micro-finance become an important intervention as a tool for rural development and poverty alleviation. In India, In India, many a number of microfinance institutions including NGOs, NBFIs and Government agencies had intensively intervened. Innovation of group based microfinance especially Self-help Groups (SHGs), Grameen Joint Liability Groups (JLGs), Mutually Aided Cooperative Societies (MACS) etc. which replaced the physical collateral with moral and social collateral for micro-loans had