₹26,621 Crore Credit Plan Signals Telangana’s Women-Centric Growth Strategy

In a major boost to women-led economic empowerment, the Telangana government has announced a significant expansion of financial support for Self-Help Groups (SHGs) by increasing the interest-free loan limit from ₹5 lakh to ₹10 lakh . The move is part of a broader strategy aimed at transforming women’s groups into powerful drivers of rural and urban economic growth.

The announcement was made by Panchayat Raj, Rural Development and Women & Child Welfare Minister Danasari Anasuya, popularly known as Seethakka , during the launch of the SHG Bank Linkage Annual Credit Plan 2026-27 at Jyotiba Phule Praja Bhavan in Hyderabad.

Under the revised policy, the state government will bear the entire interest burden on loans up to ₹10 lakh taken by eligible SHGs from banks. Alongside this, the government has prepared a massive ₹26,621.47 crore annual credit plan for the upcoming financial year. In comparison, banks had disbursed around ₹25,228 crore to SHGs during 2025-26.

Highlighting the growing economic strength of women’s collectives, Seethakka said Telangana’s SHGs are no longer limited to small savings activities but are steadily emerging as entrepreneurs across multiple sectors. Women’s groups are currently operating canteens, dairy centres, petrol bunks, solar units, warehouses, transport services and retail marts in different parts of the state.

The minister noted that nearly 40 percent of paddy procurement centres in Telangana are now being managed by women’s SHGs, reflecting the government’s trust in their organisational and financial capabilities. She said the state’s flagship “Indira Mahila Shakti” initiative aims to transform women from “lakhpatis into crorepatis” by encouraging entrepreneurship and sustainable income generation.

Seethakka also praised the strong repayment culture among SHGs, pointing out that the Non-Performing Asset (NPA) ratio in Telangana’s SHG sector stands at just 1.40 percent . She particularly lauded Nirmal district for achieving zero NPA status.

To support the enhanced scheme, the government has allocated nearly ₹2,500 crore towards interest subsidies this year. Officials believe the initiative will reduce dependence on private money lenders while strengthening women’s participation in Telangana’s economic growth story.

Senior officials, bankers and federation representatives attended the programme and discussed the implementation of the expanded lending framework for SHGs across the state.