Microfinance has long been recognised worldwide as a tool for poverty alleviation. Besides, it also empowers the poor, both socially and politically. One of the largest microfinance programs in India is carried out through women self-help groups (SHGs). Extant literature suggests that by participating in SHGs, Indian women gain numerous socio-economic and political advantages. This paper specifically aims to explore the relationship between women's participation in self-help group activities and their involvement as well as role performance in grassroots socio-political institutions, such as family, village council, local self-government, and caste. The paper concludes that the more actively the women participate in self-help group activities, the more involvement they gain and the more important role they play in grassroots level socio-political institutions. The study has practical implications for policy makers, non-government organisations and activists in India that are attempting to elevate the status of women by enabling their participation in all spheres of life.