Telangana Boosts Women SHGs by Doubling Interest-Free Loan Limit to ₹10 Lakh, Says Seethakka

Telangana government has doubled the interest-free loan eligibility limit for women Self-Help Groups (SHGs) from ₹5 lakh to ₹10 lakh, with the state set to bear the interest burden on the loans. This announcement was made by Panchayat Raj and Rural Development Minister Danasari Anasuya (Seethakka) during the launch of the SHG Bank Linkage & Rural Self Employment Training Institutes (RSETIs) Annual Action Plan for 2026-27 in Hyderabad. The government aims to extend bank-linked loans worth ₹26,621.47 crore to 4,33,975 women SHGs in the current fiscal year, including significant allocations for both rural and urban groups.

Minister Seethakka highlighted the impressive accomplishment of women SHGs, which have secured nearly ₹60,000 crore in loans against a target of ₹40,000 crore over the previous two years, largely due to the support from bankers and strong repayment discipline. The NPA ratio among women SHGs remains exceptionally low at only 1.40%, demonstrating their financial responsibility. Furthermore, Nirmal district was praised for achieving zero NPA status, showcasing the effectiveness of this initiative.

The Minister underscored the transformative impact of access to institutional finance through women’s groups, emphasizing its role in preventing rural exploitation by moneylenders, which had historically driven some individuals toward extremist movements. The event was also attended by Special Chief Secretary Dana Kishore and CEO Divya Devarajan, reflecting a collaborative effort among government officials to bolster the financial empowerment of women in rural areas.