In this study, green synthesis of silver nanoparticles was done using leaf extracts of Azadirachta indica. The flavonoids and terpenoids present in the extract act as both reducing and capping agent. Microbes (Escherichia coli and Gram-positive bacteria) were isolated from borewell water using selective media. The silver nanoparticles showed antimicrobial activities against Gram-positive bacteria and E. coli. However the silver nanoparticles were more effective against E. coli as compared to Gram-positive bacteria. Various techniques were used to characterize synthesized silver nanoparticles such as DLS and UVvisible spectrophotometer. The absorbance peak was in the range of 420-450 nm, that varied depending upon the variation in the concentration of neem extract. This is a very rapid and cost-effective method for generation of silver nanoparticle at room temperature, however, its exact dose in water purification has to be determined.