The reason for this paper is to introduce the linkages between credit activity conveyance framework and development of credit establishments for the recovery of the provincial economy. Tamil Nadu is a novel drive of Indian banks for Microfinance activity for working on the situation with ladies. The members of Self-Help Groups they profited microfinance credit. Microfinance programs are seen as a critical technique in tending to both destitution and ladies strengthening. The field level perception recommends that the SHGs have a decent possibility of food as they were developed in light of the normal issues related with the outright destitution of the individuals and due to mindfulness among them. This paper presents an impact of micro-finance and self-help groups in the rural development of Tirunelveli District. By these study researcher find out the Source of Information about SHGs, Benefits derived by Members, Beneficiary of Government Schemes, Awareness about Rural Development Schemes in the Tirunelveli District. For that researcher collected and final testing of the model a well-structured questionnaire was designed and hosted on online with the help of Google form and 50 respondents sent their answer out of 50 questionnaires with regard to factors and consistent with using chi-square test