Self Help Group (SHG) is a small voluntary association of poor people, preferably from the same socioeconomic background. The government also wants to promote the SHG by the way of providing the grants which is either interest free or on a very nominal interest. The members of SHG come together for the purpose of solving their common problems through self-help and mutual help. The SHG promotes small savings among its members. The savings are kept with a bank. This common fund is in the name of the SHG. Usually, the number of members in one SHG does not exceed twenty. This is one of the most effective ways to promote the micro-finance in the society & seen as an important tool for the empowering of women.

This research paper is an empirical case study which focuses on the functioning on Women Self Help Group. Primary data for the present study was obtained from original sources by the researcher himself. It was gathered specially for a project on hand. Primary data for the present study was collected through personal interview & by administering structured questionnaires. The time spam of the study consisted of 30 days in the month of August 2013 & sample consisting of 100 SHG members were interviewed in Nanded city.