Self Help Groups (SHGs) have emerged as a powerful tool in promoting both financial inclusion and women empowerment in India. These groups typically consist of 15–20 individuals, mostly from economically disadvantaged backgrounds, who voluntarily unite to address issues related to poverty, social inequality, and financial exclusion. SHGs are formed democratically and function independently, free from political affiliations or external pressures. While SHGs can be composed of men, women, or mixed members, it is noteworthy that over 95% of SHGs in India are formed exclusively by women. This study specifically examines the impact of microcredit facilities provided by the banking sector on the empowerment of women, with a focus on SHG members in the Erode District. A sample of 100 women members from various SHGs was selected by convenience sampling to assess how effectively microcredit meets the financial needs of both rural and urban women. The findings reveal that SHGs have become a vital channel through which poor women access credit, leading to significant improvements in their economic and social status. Through participation in SHGs, women have experienced increased autonomy, greater involvement in decision-making, and enhanced recognition as active contributors in democratic, economic, cultural, and social spheres. The study underscores that SHGs not only fulfill credit requirements but also act as a platform for holistic empowerment, enabling women to uplift themselves and their communities.