Group-based projects can form an effective tool for rural and urban development. This study analyses the impact of poverty alleviation schemes on rural and urban SHGs in Andhra Pradesh. Using multistage random sampling, 222 SHG members were interviewed from 20 SHGs (ten SHGs from rural and ten SHGs from the urban). Results demonstrated several direct and indirect benefits for rural and urban SHGs at different social strata. The study recommends considering the involvement of SHG members in planning and implementation of any programs to harness better outcomes and impact in both rural and urban areas.