India faces grave problem of poverty and its alleviation is the need of the hour. The current plan emphasizes on the need of achieving faster, sustainable and inclusive growth by increasing employment opportunities and other means of earning livelihood. Micro finance plays an important role here. There are various types of micro financing. The most widespread in India are the Self Help Groups. The grey areas are related to its regulation, low financial literacy, and insufficient funds; over indebtness etc. This paper studies the progress of self-help bank linkage programme. It analyses a few problems faced by micro financers and measures to be taken to overcome them.