English: India is a developing country. India's performance in booming sectors is mediocre, even after six decades of independence. Undoubtedly, almost twenty-five percent of its population lives in poverty and there is also the problem of unemployment. Weight loss is not only critical but also a permanent affliction in India. At the same time, there are untapped natural resources. Major problems are unemployment and poverty especially in rural areas due to unorganized sources of credit and fewer facilities provided to poor people. Finance plays a paramount role in unlike the economic activities run by the rural masses, due to the attribute that most of the
rural people are very poor. The study was conducted to find out the factors that pave the way for microfinance for poor people in Vindhya Region. 300 respondents were interviewed informally through a structured
questionnaire. The study revealed that most of the SHG members performed well and found participation in the
SHG program beneficial. The performance of SHGs can be improved through training and awareness programs
organized by NGOs and the government at the country level. Furthermore, in this paper, an effort is devoted to
study the relationship between performance and personal and socioeconomic characteristics.
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