India’s achievements in the development sectors are moderate, even after sixty five years of independence. The major challenges are unemployment and poverty, especially in rural areas on account of reliance of poor on the unorganized sources of credit. The dynamics of rural credit has rapidly changing from time to time. Government has spend huge amount on agriculture and rural development programmes of credit, as it was assured that farmers and poor households are facing liquidity constraints. Most of these efforts are heavily subsidized charging concessional rate of interest and tolerating loan defaults. Self-Help Groups (SHGs) are micro credit institutions, which have emerged at the village level based on selfhelp, collective perception, decision making and implementation of common programmes. Nagapattinam district is one among the front line districts in the promotion of SHGs, which are developed as a tool for the eradication of poverty. In this district, the role of SHG movement is all the more important for the promotion of economic interest of the inhabitants of the districts especially women. The present study is focused the internal loan among women SHGs in Nagapattinam