BWDA formed SHGs for their social economic development. For the economic development, SHGs contacted as to arrange credit facilities. BWDA tried its level best to arrange credit to the SHGs through Banks, but it was not materialised.

At this juncture that BWDA decided to start its own mirco-finance programme to cater to the credit requirements of the groups as well as address their other credit related issues. It started its micro-finance on September 9th, 1999 with an initial fund of Rs. 1.5 million from the Rashtriya Mahila Kosh (RMK), New Delhi, under the name of BWDA Welfare Scheme (BWS).

Since then, BWDA was actively engaged in its micro-finance programme besides its usual Social Mobilization programmes in the areas of women SHG formation, health and sanitation, family welfare, animal welfare, education, vocational training for women and various awareness programmes concerning gender issues and education.

As the demand from the SHGs were so high BWDA board decided to promote a seperate entity for the Micro finance operation to benifit SHGs, JLGs and Individuals of our target area (TamilNadu, Kerela, Pudhucherry(Pondycherry) and Andhaman Nicobar Islands) Given background BWDA Finance Limited has been started in 2003 and Registered with register of Companies(ROC) and Reserve Bank of India (RBI)