Telangana Raises Interest-Free SHG Loan Limit to Rs.10 Lakh, Government to Bear Interest Burden: Minister Seethakka
Telangana Minister Seethakka announced that the interest-free SHG loan limit has been increased from Rs.5 lakh to Rs.10 lakh, with the government bearing the entire interest burden on loans.
Danasari Anasuya Seethakka announced a major boost for Women Self-Help Groups (SHGs) in Telangana, stating that the interest-free loan limit for eligible SHGs has been increased from Rs.5 lakh to Rs.10 lakh. The Minister also announced that the Telangana Government will bear the entire interest burden on bank loans up to Rs.10 lakh taken by Women SHGs. The government will spend Rs.2,500 crore this year towards interest subsidy for SHG loans.
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Telangana Government Increases SHG Interest-Free Loan Limit
The announcement was made during the launch of the Annual Credit Plan 2026–27 for Women Self-Help Groups held at Jyotiba Phule Praja Bhavan.
The programme was attended by Dana Kishore, Divya Devarajan, Srinath, senior bankers, officials, district federation representatives and SHG members.
Minister Danasari Anasuya Seethakka inaugurated the programme by lighting the ceremonial lamp and unveiled the Annual Bank Credit Plan for the financial year 2026–27.
Rs.26,621.47 Crore Bank Credit Target for Women SHGs
The Minister stated that the Telangana Government has set a target of providing bank credit worth Rs.26,621.47 crore to Women Self-Help Groups during the current financial year.
She said that during 2025–26, SHGs received bank loans worth Rs.25,228.89 crore.
According to the Minister, while the government had initially targeted Rs.40,000 crore bank linkage loans over the last two years, loans worth Rs.60,000 crore were successfully disbursed with the cooperation of banks and Women SHGs.
“Women’s Empowerment is Telangana’s Progress”
Addressing the gathering, Danasari Anasuya Seethakka said the government is moving forward with the slogan “Women’s empowerment is Telangana’s progress.”
“Our government is working with the slogan ‘Women’s empowerment is Telangana’s progress.’ We are striving relentlessly for the economic empowerment of women. True development is possible only when women come out of poverty,” she said.
The Minister stated that the government is moving ahead with the resolve to create one crore women millionaires and is ensuring priority for women in every sector.
She added that 40 percent of paddy procurement centres have been entrusted to Women Self-Help Groups.
Minister Highlights SHG Loan Repayment Performance
The Minister said there was a time when women could not access even small loans, whereas banks are now confidently extending loans worth lakhs of rupees to SHGs.
She praised women for maintaining excellent repayment discipline and stated that the NPA level of SHG loans stands at just 1.40 percent.
Calling Nirmal district’s achievement of zero NPA a matter of pride, she appreciated Vijayalakshmi and Gangavva.
The Minister urged all districts to achieve 100 percent repayment performance on the lines of Nirmal district.
Government to Spend Rs.2,500 Crore on Interest Subsidy
Recalling her experiences, Seethakka stated that she had witnessed exploitation by private moneylenders in the past and said that bank linkage loans to SHGs are helping eliminate such exploitation.
“We are standing guarantee to the banks. Loans given to Women SHGs are completely safe. Individuals may default, but women uphold trust and financial discipline,” the Minister said.
She announced that the government will spend Rs.2,500 crore this year towards interest subsidy for SHG loans to reduce the financial burden on women.
Indira Mahila Shakti Programme Creating Women Entrepreneurs
The Minister said the Indira Mahila Shakti programme is transforming women from job seekers into job creators.
She highlighted the successful participation of women in SHG canteens, buses, dairy centres, petrol bunks, solar units, women marts and warehouses.
“Strong women mean a strong economy,” Seethakka remarked.
She added that financially empowered women strengthen families, and strong families contribute to the development of Telangana.
The event concluded with the felicitation of district DRDOs and district federation presidents who excelled in loan disbursement and repayment performance.
Danasari Anasuya Seethakka announced that the Telangana Government has increased the interest-free loan limit for Women SHGs from Rs.5 lakh to Rs.10 lakh and will bear the entire interest burden on bank loans up to Rs.10 lakh. The government has set a Rs.26,621.47 crore credit target for SHGs, plans to spend Rs.2,500 crore on interest subsidy this year and aims to strengthen women’s economic empowerment across Telangana.
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