Microfinance incentives have important influence on promoting sustainable development of rural microfinance institutions In order to provide a corresponding reference and inspiration for China’s sustainable development, this paper tries to comb and conclude the mechanism and the role of rural micro-credit through the group loans (self-selection, co-supervision, and mandatory repayment), the dynamic incentives (continued financing, interest rate incentives), cycle repayment, and other aspects of social capital and induction system