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Microfinance in India is mainly provided through Self-Help Groups (SHGs), Microfinance Institutions (MFIs) and some other methodologies. The main objectives of the study are to study the management practices and governance structure adopted by SHGs, to examine the impact of microfinance programme on employment and Income level of participants, to analyze the ability of SHGs to deal with risky situations faced by the households and to understand the problems of SHGs and to provide alternate strategies to make SHGs effective. The study had found a remarkable change in the socio-economic condition of the participants. The review of performance of SHGs in Mewat district reveals that microfinance programme has significant impact on employment and income level of the participants. It helped members to raise their income level through IGAs. The results of study also show that SHGs helped their members and their HH to deal with risky situations faced by them. Further, the present study discusses the problems faced by SHGs. The study also gives some suggestions on the basis of these problems faced by members and other person associated with SHGs to make SHGs more effective and efficient.