Hyderabad: Banks need to lend to women’s self-help groups without fear or hesitation, Minister for Panchayat Raj and Rural Development Seethakka said on Thursday. She promised that the government would stand as guarantor for every rupee taken by these groups and ensure full repayment.
Speaking at the launch of the 2025–26 annual bank linkage action plan by SERP (Society for Elimination of Rural Poverty) at Praja Bhavan, the minister made it clear that a dedicated app was soon to be introduced to streamline loans and transactions for SHGs across Telangana. This platform, she said, would support a new UPI-integrated system allowing transparent repayments directly to banks.
Reflecting on the current year, Seethakka pointed out that the government had already surpassed its lending target for women’s groups in 2024–25. Compared to the previous year, an additional ₹5,000 crore in loans had been extended—a record in SHG history.
She criticised the reluctance of banks, noting that while many industrialists seek massive loans without accountability, women’s groups have consistently honoured their commitments. “Last year, they achieved a repayment rate of 98.5 percent. Yet bankers remain wary,” she said.
Expressing concern over the consequences of banking hesitancy, Seethakka warned that women were often forced to turn to private moneylenders charging exorbitant interest. “I’ve personally seen people lose land because they couldn’t repay interest. In tribal areas, many ST farmers have surrendered land deeds due to crushing debt,” she added.
Among those present at the event were Panchayat Raj Secretary Lokesh Kumar, SERP CEO Divya Devarajan, Stree Nidhi Federation MD Vidyasagar Reddy, NABARD CGM Uday Bhaskar, and SLBC Convenor Chandrabaur. During the event, the minister also launched a financial literacy booklet aimed at SHG members.
Women from groups with 100 percent repayment rates and bank officers who met their lending targets were felicitated.