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Fast retrieval of relevant information from the databases has always been a significant issue. Different techniques have been developed for this purpose; one of them is Data mining. Clustering analysis is a key and easy tool in data mining and pattern recognition. In this paper K-Mean clustering is used for evaluating the performance of socially and economically backward group of people, self help groups (SHG's) in Kerala state, and suggestions are made to improve socioeconomic status. The necessary information about the members of SHG has been collected from 9 districts in Kerala through structured questionnaire. The Parameters considered for the study are financial status, types of loan availed, improvement in assets before and after joining the group, effect of joining in more than one group and district wise analysis.