Microfinance and micro-credit practices have become a popular means of local development. In India, their expansion has been largest in Andhra Pradesh. These practices target primarily women, who are encouraged to construct self-help-groups in order to have a social basis for raising collateral and for receiving financial services. Microfinance has been perceived by the public as inducing strong positive effects on women’s empowerment and as strengthening the democratic fibre. From these standpoints, expansion and effects, it has been evaluated and analysed whether microfinance can empower women and if empowered women can make a difference in women’s and societal issues.