ABSTRACT This paper examines the creation of social capital within self help groups that operate in many Indian villages. Self help groups are formed primarily as microfinance and poverty alleviation interventions. While the focus of most studies is on the economic result derived from microfinance interventions, this paper highlights the wider benefits that result from the growth of social capital. This has social implications for self help group members, their families, and the wider communities in which they live. The paper observes that social capital has a predominately positive influence on the actions of self help group members as they work for both collective and individual improvements in their community. The paper concludes that there are significant benefits and long term implications which flow into communities from collective actions resulting from the growth of social capital within self help groups. The paper is a ‘work in progress’ and does not seek to provide all the answers to this issue. Feedback relating to these practical experiences is welcomed by the author.