Vol. 2, Issue 10, Part K (2016)

Abstract
SHGs have emerged as a powerful mechanism for pooling resources, facilitating access to credit, and promoting entrepreneurship among members. Through the analysis of various case studies and existing literature, the research highlights how microfinance initiatives linked to SHGs provide essential financial services, including savings, loans, and capacity-building programs. Additionally, challenges faced by SHGs in accessing sustainable microfinance are examined, such as issues related to interest rates, repayment pressure, and market access. Ultimately, this research underscores the transformative potential of SHGs and microfinance in fostering economic independence, enhancing livelihoods, and contributing to the overall development of rural and semi-urban communities in India. This research investigates the relationship between Self-Help Groups (SHGs) and microfinance in India, focusing on their collective role in enhancing financial inclusion and empowering marginalized communities, particularly women.