In a major boost to women self-help groups (SHGs), the Telangana government has increased the interest-free loan eligibility limit from ₹5 lakh to ₹10 lakh for eligible women’s groups across the state.
Panchayat Raj, Rural Development and Women & Child Welfare Minister Seethakka announced that the government will bear the entire interest burden on bank loans up to ₹10 lakh taken by women SHGs.
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 in Hyderabad.
₹26,621 Crore Credit Target for 2026-27
The minister said the government has set a target of providing ₹26,621.47 crore in bank loans to women SHGs during the 2026-27 financial year.
• ₹25,228.89 crore loans were disbursed in 2025-26
• ₹60,000 crore bank linkage loans provided in the last two years against the ₹40,000 crore target
• Government to spend ₹2,500 crore this year towards interest payments on SHG loans
Seethakka said the achievement was possible because of the repayment discipline shown by women SHGs and the cooperation extended by banks.
“Women’s Growth is Telangana’s Progress”
Addressing the gathering, Seethakka said the government is working with the slogan “Mahila Unnate Telangana Pragati” and is committed to women’s economic empowerment.
She said the government aims to create one crore women millionaires in Telangana and is encouraging women-led economic activity across sectors.
The minister stated that 40% of paddy procurement centres have already been handed over to women SHGs and added that women are successfully managing SHG canteens, buses, dairy centres, petrol bunks, solar units, warehouses and women marts.
SHG NPA Only 1.40%
Highlighting repayment performance, Seethakka said the Non-Performing Asset (NPA) ratio of women SHGs stands at just 1.40%, reflecting their financial discipline and credibility.
She specially appreciated Nirmal district for achieving zero NPA status and congratulated district officials and federation representatives for the achievement.
The minister also recalled her past experiences witnessing exploitation by private money lenders and said strengthening SHG-bank linkage was helping protect poor women from such exploitation.
“Banks have full security when they lend to women SHGs. Women protect trust and repay responsibly,” she said.
The programme was attended by Special Chief Secretary Dana Kishore, SERP CEO Divya Devarajan, Streenidhi Deputy MD Srinath, bankers, officials and women SHG representatives from various districts.
