This paper belongs to study about the SHGs functioning in darmaha panchayat of east champaran District. The basic occupation of the district is agriculture, there are different major crops of the district such as rice, paddy, sugar cane, Jute and lentils. Animal husbandry is also one of the key sectors which is important for income and employment .It contributes about one-fifth of the total rural income, and provides large scale employment to women, belonging to the marginalised sections of society. There are some small scale industry like pearl button industry, fishery development which are popular in East Champaran. The women in rural areas are showing interest to become independent due to SHGs. SHGs mainly focus on financial independence. Financial independence through self-employment has many externalities such as improved literacy levels, better health care and even better family planning. It also improves well-being and status in society. Self-help groups (SHGs) try to build the functional capacity of poor and marginalized sections of society in the domain of employment and income generating activities. The study reveals about the inability to manage business, lack of basic knowledge among SHG members due to their illiteracy, frequent changes in formalities for availing loan, lack of adequate training etc. are the major problems faced by SHG members.