<p>Microfinancing is being used as policy intervention for uplifting marginalised people particularly in developing countries like India. Microfinance plays a crucial role in poverty reduction by providing financial services to low-income individuals who lack access to traditional banking systems. This study investigates the effectiveness of microfinancing in reducing multidimensional poverty among women Self Help Group members focusing on the Jammu &amp; Kashmir Rural Livelihood Mission (JKRLM). Propensity score matching method was used to assess the program’s impact on various dimensions of poverty between women participants (Treatment group) and non-participants (Control group). The findings of the study revealed that microfinance has negative and significant impact on multidimensional poverty. The likelihood of being multidimensionally poor decreases among members who avail microfinancing than non-members. While comparing the mean difference in outcome (Multidimensional Poverty) between members (treatment group) at different stages of Self-Help Group’s (SHG’s) maturity with non-members (control group), the results infer that probability of being multidimensionally poor is substantially low among mature (stage-III) members than non-members. Among the members the likelihood of multidimensional poverty is significantly low among the mature SHG’s (Stage-III) than new SHG’s (Stage-I). The amount of loan received is also a significant determinant of multidimensional poverty among women SHG members. These findings suggest that microfinancing initiative under JKRLM, plays a crucial role in alleviating poverty by addressing various dimensions of deprivation therefore, the scheme needs to be continued with extended outreach and more budget outlays. The policy focus should be enhancing the amount of microfinance to SHG members and measures should be taken to retain and sustain SHG group members for the long durations for attaining better outcomes through microfinancing.</p>