Microfinance is playing a significant role in reaching to those who have not been reached yet by the formal financial institutions and the world is seriously contemplating to minimize the gage between the haves and have-nots. the current study examines the impact of Microfinance on the  economic Empowerment of  Microfinance beneficiaries in the Kashmir Division of J & K State (India). The present study made an attempt to examine the impact of microfinance on the Self Help Groups (SHGs) in the selected districts of India in Kashmir Division of J&K State (India). It is observed in this study that microfinance development has a significant impact on Economic empowerment of microfinance beneficiaries.