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The aim of this paper was to examine the rural development through micro finance with special reference to self-help groups at Nagapatanam district. For this investigation primary data was collected from 500 respondents through a structured questionnaire.Nagapatanam district comprises of eleven blocks, Proportionate Stratified Random Sampling procedure was adapted to select sample self-help groups and member respondents from all the eleven blocks in Nagapatanam district. The present study has been undertaken with a view to evaluate the performance of SHGs and their impact on the rural development of members in Nagapatanam District, Tamil Nadu. The study is based on empirical evidences gathered from the selected respondents to study the progress of SHGs in Nagapatanam District. Further, attention has also been focused on evaluating the performance of sample SHGs and efforts have been made to examine how far SHGs help in the upliftment of rural development. Besides the impact of SHGs on entrepreneurial development, employment generation, earning capacity and asset creation of rural area were analysed in the study.