The present study is significant in evaluating the role of NGOs in financing SHGs with focus on Rashtriya Seva Samithi (RASS), the only popular NGO in Rayalaseema region of the state of Andhra Pradesh in India. In view of growing significance of financing SHGs by NGOs, especially in a backward region like Rayalaseema in the State of Andhra Pradesh, any study would be worthwhile to be undertaken. The present study is organized into 7 chapters. The first chapter is introductory in nature, Research design and methodology was prescribed in the second chapter, the third chapter and fourth chapters throw light on the mobilization of funds, financing SHGs by RASS and the socio-economic conditions of SHG beneficiaries. The operational problems are discussed in sixth chapter. The last seventh chapter presents a summary of findings and suggestions.