Women’s Day: Telangana govt releases Rs 750 crore interest-free loans fund for SHGs

Telangana government released Rs.750 crore to extend interest-free loans to be disbursed to Self-Help Groups

Hyderabad: The Telangana government released Rs.750 crore to extend interest-free loans to be disbursed to Self-Help Groups (SHGs) in rural and urban areas across the State as part of International Women’s Day celebrations.

Of the Rs.750 crore released, Rs.250 crore would be extended to SHGs operating in municipal bodies and the balance Rs.500 crore would be disbursed to SHGs operating in rural areas, Municipal Administration and Urban Development Minister KT Rama Rao said.

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The Minister on behalf of the State government extended greetings to the SHGs women.

Following Chief Minister K Chandrashekhar Rao’s instructions, the State government decided to release the pending funds, including arrears to the SHGs in connection with Women’s Day and this was a welcome move, the Minister said in a statement issued here on Monday.

The Minister said that Rs.250 crore loans funds to be offered to SHGs in municipal bodies were released on Monday. These funds would be distributed to SHGs in municipal towns in 23 districts, he said.

Members of the women SHGs were maintaining financial discipline and were promptly repaying the loans to the banks. In terms of repayment of loans, women SHGs from Telangana were leading the chart, the Minister said.

There were 1.77 lakh SHGs with 18 lakh members in Urban Local Bodies across the State. The State government’s move to release the interest-free loans to the SHGs would be very beneficial to the members.

Till date, the State government extended Rs.15,895 crore to SHGs through bank linkages. Under this initiative, the State government to reduce the interest component, extended Rs.370 crore to 90,325 SHGs since the formation of the State, he added.