Micro Finance means a provision of credit and financial services to the people who can’t have access to formal banking systems. The products of microfinance are very small in amounts to the poor in rural, semi urban or urban areas. Microfinance enables people to increase their income level and improve living standards. Nowadays microfinance is emerging as a booming sector in Indian Financial system. The paper aims at getting basic information of MFIs and understanding its workings. The primary data have been collected by using questionnaire method and then by visiting selected Microfinance Institutes (MFIs) in Pune city. The basic objective behind writing this paper is to understand the working of MFIs and their role in development of society. The conclusion of this paper is microfinance surely plays a vital role in development of people especially micro entrepreneurs by helping them to run their enterprises.