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Abstract
Various studies have been conducted in micro finance in Sri Lanka, India and other countries. These studies have been conducted in considering macro-environmental factors, micro finance and employment, main challenges and issues in microfinance sector and micro finance and poverty alleviation in different methodological and analytical perspectives. This study is aimed at defining micro finance and the role of micro finance in rural empowerment. But, this proposed study is based on literature review. Review has focused on selected countries form SAARC region, the role of micro finance in rural empowerment, success and failures and solutions are mentioned in this study.