Micro finance as an institution are seen to have characteristics that help to solve the problems of moral hazard and adverse selection, which are the existing problems of rural credit institutions which other institutions failed to do. Group lending, peer monitoring and joint liability systems solve the adverse selection and moral hazard issues associated with rural credit markets. This study also focused in finding out the impact of micro finance programme on poverty, money lenders, women empowerment and living standards of the rural poor based on the primary and secondary data collected from Kamavarapukota mandal in Andhra Pradesh in India. Using primary data collected from the filled survey through the constructive schedules and personal interview to estimates the linkages between microfinance and its impacts on rural credit facilities, dependency ratio of money lenders for their credit needs, reduction of rural poverty, and empowerment of women in socio-economic activities. The conclusion of this study, clearly states that the introducing microfinance inducing the overall improvements of their credit facilities as well as augmentations of their livelihood facilities in different sections of the society. Further positive effects of this programme is that to reinforcements of vulnerable groups or targeted population Particularly, SCs, STS, OBCs and other weaker section of the society directly to empower and to participate in social, economic,  and political activities