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Telangana to continue interest-free loan scheme for SHGs

The Telangana government has announced that it would continue implementation of the interest-free loan scheme to women self help groups
Telangana to continue interest-free loan scheme for SHGs

The Telangana government has announced that it would continue implementation of the interest-free loan scheme to women self help groups. This was informed by Minister for Panchayat Raj and Rural Development K.T. Rama Rao.

“The government has already introduced schemes such as ‘Kayalana Laxmi’ and will take up more such schemes for the welfare of women. We have sanctioned Rs. 485.44 crore for the scheme for 2014-15 against Rs. 344.66 crore released last year,” Rao said.

The state government’s decision to continue implementation of the scheme would benefit about 30 lakh women enrolled in 3 lakh SHGs. It is believed that the move will lessen the financial burden on women who were taking up livelihood activities on their own. Though there were about 4.15 lakh SHGs in the state, only 3 lakh groups who were repaying the loans in time were eligible for interest benefit, he noted.

The Chief Executive Officer of the Society for Elimination of Rural Poverty (SERP) A. Murali explained to Rao that the total outstanding loans of SHGs was Rs. 5,921 crore till November-end 2014. He also said they were also encouraging other groups to repay loans taken by them in time to avail the interest benefit being extended by the government. The interest benefit would be directly credited to the bank accounts of groups that had promptly repaid loans, Murali said.

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