The microfinance industry has off-late been in the limelight and rightfully so, for its contribution to the various economies of the world. Microfinance has a much longer history than what is usually recognized. Delving in to the history of the origin of microfinance, it can be seen that microfinance at the institutional level developed directly from the conventional money lenders but without the negativities involved therein. Microfinance, as an institution has its origin probably in the Hui in China, Chit funds in India, Arisan in Indonesia and the Paluwagan of the Philippines and the like. Surprisingly, microfinance plays a critical role even in countries as developed as Germany where they control approximately 50% of banking assets and reach to more than 90% of the population. Microfinance is definitely not something that has come recently but has a very long history, probably going into the 18th century. It is that, only off-late microfinance has been formalized, regulated and controlled. It is almost since the 16th and the 17th centuries that microfinance is juxtaposed to commercial and pilot banking. Microfinance is a powerful intermediation between micro savings and micro credit. Microfinance, over a period of time has taught a number of powerful lessons. First among these lessons is the fact that local initiatives based on the concept of self-help are tremendously powerful and can initiate change that can actually bring out a large number of people from below the poverty line and add trust to national and global economies. One another important lesson is that of the viability of small enterprises, both form and non-form based and micro-financial institutions is intertwined and are directly related to each other. Last but not the least is that continual access to financial services particularly that of savings and credit over sustained