This research aims to investigate the

impact of microfinance on rural/socio-economic

development and entrepreneurial skill

development. Particularly, the present study aims

to explore the impact of microfinance on social

development, financial empowerment, education,

healthcare, economic independence and

entrepreneurial development. Data were

collected through structured questionnaires from

the beneficiaries of National Rural Livelihood

Mission (NRLM) erstwhile Swaran Jayanti

Shahri Rozgar Yojana (SJSRY) microfinance

scheme in the Union Territory of Jammu and

Kashmir, India. Results reveal that microfinance

facilitated social development, improved

financial empowerment, and promoted decision

making relating to education and healthcare

among beneficiaries. The findings also indicate

that microfinance helps to increase

entrepreneurial skill development among the

beneficiaries. This study offers an insight into

how microfinance not only eliminates poverty but

also facilitates social development and

entrepreneurial skills. Such findings have many

key implications for academics, policymakers

and microfinance institutions.