This chapter considers the link between rural finance and inclusive rural transformation.  Rural transformation is defined here as long-lasting economic, social and institutional change, where rural societies diversify their economies to high-valued agriculture and non-farm activities, interact and trade with distant places, move from dispersed villages to towns and cities, and become culturally more similar to cities. Inclusive rural transformation ensures that conditions are in place for everyone to exercise their economic and political rights, develop their abilities and take advantage of opportunities. It leads to a marked improvement in the economic position and quality of life of small-scale farmers, the land-poor and landless, workers, women, young people, marginalized ethnic groups and victims of disaster and conflict.