Micro finance means funds which are provided to the micro and small medium enterprises (SMEs) and also to the farmers and cottage industries etc. Micro finance are provided in the form of small size of loans, cash subsidies, cash credits, bank overdrafts, bank guarantee, And Letter of Credit etc. Besides various financial services like Kisan credit card, Debit cards, Money Transfer Facilities, Micro Insurance are provided to the farmers and micro and small industries. In India most Microfinance loans are in the range of 5000 to 20000 but the development and regulation bill 2007 defines microfinance loans as loans with amount not exceeding Rs. 50000 in aggregate per individual or small enterprise.