This study explores the transformative role of microfinance in enhancing the socio economic status of women in rural Tumkur District, Karnataka. By examining various microfinance initiatives, the research highlights how access to financial services empowers women, improves their economic conditions, and fosters community development. Through a review of literature, case studies, and field surveys, this paper identifies the challenges women face in accessing microfinance and proposes effective solutions to enhance the impact of these financial services. The findings underscore microfinance as a crucial tool for gender equality and sustainable rural development.