Hyderabad: The Telangana government increased the Vaddi-Leni-Runalu (VLR) limit for women Self-Help Groups from Rs 5 lakh to Rs 10 lakh, Panchayat Raj and Rural Development Minister Danasari Anasuya Seethakka announced on Thursday.
The Minister announced the decision while launching the SHG Bank Linkage Programme Annual Action Plan 2026-27 at Praja Bhavan. Around 63 lakh women associated with SHGs are expected to benefit from the enhanced Telangana VLR limit.
The move aimed to improve the credit availing capacity of women’s groups across the state. According to preliminary estimates, the revised scheme would require nearly Rs 2,500 crore towards interest payments, compared to the current expenditure of around Rs 1,300 crore.
The government also set a target of extending Rs 26,621.47 crore in bank linkage loans to SHGs during 2026-27. During the previous financial year, women’s groups received loans worth Rs 25,228.89 crore.
Special Chief Secretary Dana Kishore, SERP Chief Executive Officer Divya Devarajan, bankers from nationalised banks, district federation representatives and SHG members attended the meeting. The Minister later felicitated district officials and federation leaders for their performance in loan disbursal and repayments.
Telangana VLR limit strengthens women empowerment
Seethakka said the government would bear the interest burden on bank loans availed by SHGs up to Rs 10 lakh. She stated that although the government initially targeted Rs 40,000 crore in bank linkage loans over two years, nearly Rs 60,000 crore had already been achieved with the support of bankers and SHGs.
Addressing bankers and women representatives, the Minister said the government under Chief Minister A. Revanth Reddy was working with the slogan “women’s progress is Telangana’s progress.” She added that the government aimed to transform one crore women into crorepathis.
Seethakka said women earlier struggled to secure even small loans, but banks were now extending loans worth lakhs with confidence. She attributed this progress to the repayment discipline shown by SHGs and noted that the non-performing asset rate among women’s groups stood at only 1.4 per cent.
The Minister described Nirmal district achieving zero NPA as a proud achievement. She appreciated district officials and federation representatives for accomplishing what she called a difficult task and urged other districts to follow the model.
Telangana VLR limit supports rural enterprises
Recalling exploitative moneylending practices, Seethakka said such conditions influenced her decision to join the Naxalite movement earlier in life. She stated that the government was strengthening institutional credit access for women through banks to protect poor families from usurious lending.
“As the government is providing guarantees, loans extended to women’s groups are safe and secure. Individuals may default, but institutions like Mahila Shakti protect trust,” she said while appealing to bankers to support women’s collectives.
The Minister said women had emerged as employment creators through the Indira Mahila Shakti initiative. She noted that SHG women were successfully operating canteens, buses, dairy units, petrol bunks, solar units, Mahila Marts and warehouses.
“Strong women mean a strong economy,” Seethakka said, adding that women’s economic empowerment would strengthen families and support Telangana’s development.
She also announced that the government would encourage SHG women to establish shops during the upcoming Pushkaralu festivities.
Minister Seethakka Announces Major Boost for Women Self-Help Groups
Interest-free loan limit for each Women Self-Help Group increased from Rs.5 lakh to Rs.10 lakh
Government to bear interest burden on bank loans up to Rs.10 lakh taken by Women SHGs: Minister Seethakka… pic.twitter.com/VXrxuWNNrt
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