The facility of providing fund in the small amount to the needy and the poor section of the society for their upliftment is the work of microfinance which they do with Self-Help-Groups. A group of 10 to 12 women from the homogeneous background, who start their process of lending only when they have enough capital after their small savings within the group, is called a Self-Help-Group. Self-help- Groups helps the rural women to come out from the shell of poverty and to break the four walls which have been created by the society for the women. Women are the targets of Microfinance as they are the one who repay the loan amount on time. The motive of this papers it to Study the Psychological Empowerment of women through Microfinance. Framed Hypotheses to know the factors affecting women empowerment through SHGs. For the study the first hand data was gathered from the 16 blocks of Alwar district for this 496 sample have been taken and with the help of SPSS 22 the data was analyzed. The result of the study showed a positive impact on the psychological empowerment of women

Empowerment, Self-help-Group, Microfinance