Abstract: A small voluntary community of disadvantaged people, ideally from the same socio-economic context is the Self Help Group (SHG). The government also wants to facilitate the SHG by awarding grants that are either interest free or of very nominal interest. In order to solve their common problems by self help and mutual assistance, the members of SHG come together. Among its members the SHG encourages small savings. You keep the money with a bank. This popular fund in the SHGs name. The number of members in one SHG usually does not exceed twenty. This is one of the most productive ways to encourage society’s microfinance and is seen as an effective instrument for empowering women. This research paper is an observational case study based on the operation of the Self Help Group for Women. The researcher himself has collected primary data for the present analysis from original sources. Especially, when it was gathered for a project on hand. The primary data for the current study was gathered through personal interviews and standardised questionnaires. The study period spam consisted of 60 days in the months of February and March 2020 and a sample of 500 SHG members were interviewed in the villages of Bandipora and Baramulla in the Jammu and Kashmir Union Territory.