With the intention of providing strategic guidance, recommendations and examples of best practices on rural microfinance at the EU level, the first chapter of this study presents the main characteristics of the European microfinance sector and tracks major changes in the industry. It concludes by providing a brief overview of challenges faced by entrepreneurs and microfinance institutions (MFIs) in rural areas and is followed by a compilation of 15 ‘good practices’ in the provision of rural microfinance across both Western and Eastern Europe. The third chapter identifies some lessons learned that can be valuable for MFIs operating in rural areas starting from the good practices collected.