‘TG increases VLR limit from Rs 5 lakh to Rs 10 lakh’

metro india news  I hyderabad

In a landmark decision, the State government has increased the limit of Vaddi-Leni-Runalu (VLR) (interest free loans) for women Self-Help Groups (SHGs) from existing Rs 5 lakhs to Rs 10 lakh.

Panchayat Raj and Rural Development Minister Danasari Anasuya Seethakka announced the decision after launching ‘SHG Bank Linkage Programme Annual Action Plan 2026-2027’ at Praja Bhavan on Thursday.

Around 63 lakh women associated with SHGs are expected to benefit from the decision, as the move is aimed at increasing the credit availing capacity of the SHG groups. According to preliminary estimates, the enhanced scheme would require nearly Rs 2,500 crore towards interest payments, compared to the existing expenditure of around Rs 1,300 crore.

The government has set a target of extending Rs 26,621.47 crore in bank linkage loans to SHGs during 2026-27. During the previous financial year, loans worth Rs 25,228.89 crore were disbursed to women’s groups.

The meeting was attended by Special Chief Secretary Dana Kishore, SERP Chief Executive Officer Divya Devarajan, bankers representing nationalised banks, district federation representatives and SHG members. The Minister later felicitated district officials and women’s federation leaders for their performance in loan disbursal and repayment. Speaking on the occasion, the Minister said the government would bear the interest burden on bank loans availed by SHGs up to Rs 10 lakh.

Seethakka said that although the government had initially targeted Rs 40,000 crore in bank linkage loans over two years, nearly Rs 60,000 crore had been achieved with the support of bankers and SHGs. Addressing bankers, officials and women representatives, the Minister said the government, under the leadership of Chief Minister A.  Revanth Reddy, was working with the slogan “women’s progress is Telangana’s progress” and aimed to transform one crore women into crorepathis.

She said the government was prioritising women across sectors and noted that while women earlier struggled to access even small loans, banks were now extending loans worth lakhs of rupees with confidence.

Seethakka attributed this to the repayment discipline demonstrated by SHGs, pointing out that the non-performing asset (NPA) rate among women’s groups stood at only 1.4%. Describing Nirmal district achieving zero NPA as a matter of pride, she appreciated district officials and women’s federation representatives for accomplishing what she termed a difficult task. She urged other districts to replicate the model and strive for full repayment.

Recalling that exploitative moneylending practices is one of the reasons for her to join Naxalite movement, Seethakka said 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, appealing to bankers to support women’s collectives rather than viewing them as individual borrowers.

The Minister said women had emerged as employment creators through the Indira Mahila Shakti initiative and were successfully operating SHG canteens, buses, dairy units, petrol bunks, solar units, Mahila Marts and warehouses.

“Strong women mean a strong economy,” she said, adding that women’s economic empowerment would strengthen families and contribute to Telangana’s development. She also announced that the government would encourage SHG women to establish shops during the forthcoming Pushkaralu festivities.