Telangana to spend Rs 485 cr on interest waiver on SHG loans

Scheme will cover 70% of 415,000 women groups who are repaying loans on time

Telangana government will continue the scheme of 'zero interest on loans' taken by the women self help groups (SHGs) in the state.

State Panchayat Raj minister K T Rama Rao today disclosed that an amount of Rs 485 crore was allocated towards the interest subsidy for SHGs in 2014-15. According to the minister, close to 70 per cent of the 415,000 odd women groups will be entitled for the interest subvention scheme as they are making timely repayment of loans.

Total loans availed by the women SHGs in the state stood at Rs 5,925 crore as on November 1, 2014. Rama Rao said that his ministry would try to further enhance the SHG-bank linkage in the state.