Micro finance is a financial service of small quantity provided by financial institutions to the poor. These financial services may include savings, credit insurance, leasing, money transfer, equity transactions etc. that is any type of financial service provided to customers to meet their normal financial needs, economic opportunity and emergency. Microfinance programs are aimed to approach that segment of the society which is poor and lacks in having access to financial services. In India microfinance has been promoted by linking self help groups of the poor with the banks either directly or through non-governmental organizations (NGO’s), in a big way. This paper explores the role of self help groups in Punjab in extending microfinance services to the target group.