In a significant development, Telangana government has doubled the interest-free loan (Vaddi leni runalu) eligibility limit for women Self-Help Groups (SHGs) from ₹5 lakh to ₹10 lakh. Announcing this, Panchayat Raj and Rural Development Minister Danasari Anasuya (Seethakka) said on Thursday (May 7, 2026) that the State government would bear the interest burden on the bank loans up to ₹10 lakh.

Speaking at the launch of the SHG Bank Linkage & Rural Self Employment Training Institutes (RSETIs) Annual Action Plan 2026-27 organised at Jyotirao Phule Praja Bhavan in Hyderabad, the Minister said that the government had set a target of extending bank-linked loans worth ₹26,621.47 crore to 4,33,975 women SHGs during the current financial year 2026-27, including ₹.20,536.34 crore covering 3,90,668 SHGs in rural areas and ₹6085.12 crore covering 43,307 SHGs in urban areas. During 2025-26, bank loans amounting to ₹25,228.89 crore were disbursed to women’s groups across the State.

Only 1.40% NPA ration

Ms. Seethakka said that against a bank linkage target of ₹40,000 crore set for the past two years, women SHGs had secured nearly ₹60,000 crore in loans with the support of bankers and strong repayment discipline shown by the groups. She noted that the Non-Performing Asset (NPA) ratio among women SHGs stood at only 1.40%, reflecting their financial discipline.

The Minister specially congratulated officials and SHG representatives from Nirmal district for achieving zero NPA status. District DRDO Vijayalakshmi and district federation president Gangavva were commended during the programme.

Reflecting on her personal experiences, the Minister said rural exploitation by moneylenders had once pushed many people towards extremist movements and added that access to institutional finance through women’s groups was now helping prevent such exploitation. Special Chief Secretary Dana Kishore, CEO Divya Devarajan and other concerned officials attended the event.