The development of rural women is a crucial process through various channels through which women can acquire equal rights and effectively promote women's well-being. In this process and practice, the SHG is the major non-profit group for the age of 18 to 60 who will join together and work together for earnings. In such a way the rural women can earn and save money. They will become employed or self-employed based on the SHG resources and bank credits (Bharti in World J Entrepreneurship Manag Sustain Dev 17:617–631, 2021 [2]). In this background study, this paper is intended to identify the significance of self-help groups in the employment and income generation of rural people and analyze the role of micro-finance in supporting rural women in their financial inclusion. This paper has been prepared through various collections and collations of published research works across India and some research from various other countries. This paper mainly focuses on finding the importance of the Self-Help Group (SHG) model to support rural people for their economic stability. The development of rural women is a crucial process through various channels through which women can acquire equal rights and effectively promote women's well-being. The economic empowerment of women in a house is a significant source of developing the whole family’s economic and social status. The vulnerable rural women were able to succeed in their lives with dignity and social repute through the SHG program.