This paper aims to critically evaluate the microfinance approach in social and economic perspective.Critical analysis reveals that microfinance can be used as an efficient tool to reduce poverty, thus contributing towards economic as well as social development.Moreover, paper highlights swish supreme glide track white the role of institutional design and indicates that microfinance institutions working on the lines of non government organizations and following the double bottom line approach performs better than the other institutional frameworks.Joint poise pads in bulk liability and the role of group leader are eminent in enhancing the performance of these institutions.Poverty can be decreased if microfinance institutions are driven in a more systematic mannerkeeping in mind primarily the well being of society.