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Rs 8,000 Crore Fund for Women Entrepreneurs: Shift from SHG to Individual Loans

The government has allocated Rs 8,000 crore specifically for women to avail individual business loans, marking a strategic shift from the traditional self-help group (SHG) lending model. Union Minister Chandra Sekhar Pemmasani stated this initiative aims to empower successful SHG women to build their own individual enterprises. A unified government interface will be created to simplify the process, allowing women to apply for loans at a single point without approaching multiple banks. The move was emphasized during a key coordination meeting chaired by Rural Development Minister Shivraj Singh Chouhan, who highlighted supporting women entrepreneurs as a safe national investment.

Key Points: Rs 8,000 Cr for Women's Individual Business Loans: Govt

  • Rs 8,000 crore fund for women
  • Shift from SHG to individual loans
  • Unified portal for loan applications
  • Aim to create crorepati 'Didis'
2 min read

"Rs 8,000 Cr provided for women to avail loans on individual basis": Union MoS Chandra Sekhar Pemmasani

Union Minister announces Rs 8,000 crore fund to provide individual loans to women entrepreneurs, moving beyond self-help group lending for easier access.

"We also want all the successful SHG women... to take individual loans and build individual enterprises. - Chandra Sekhar Pemmasani"

Hyderabad, February 21

Union Minister of State for Rural Development and Communications, Chandra Sekhar Pemmasani said on Saturday that Rs 8,000 crore has been provided for women to avail loans on an individual basis, instead of as a self-help group.

Speaking to ANI, Pemmasani noted nearly 10 crore women in about 90 lakh self-help groups avail a total of Rs 2 lakh crore in loans annually. However, the government aims to provide individual loans to build individual enterprises.

The Union MoS, "Close to 10 crore self-help group women, 90 lakh self-help groups. Historically, they have been getting close to 12 lakh crore worth of loans. Every year, they take close to 2 lakh crores worth of loans. So now, instead of giving it to the groups, we also want all the successful SHG women from this group to take individual loans and build individual enterprises, individual businesses. In that aspect, today, almost Rs 8,000 crore is being given to those women."

He added that a unified government interface will allow women to apply for loans in one place, without visiting multiple banks.

"Women won't have to go to 10-20 banks to get a loan. They will apply at one place at a government interface, and that will go to multiple banks. We have asked bankers also, because we want to make it easier for women to receive loans," Pemmasani said.

Earlier today, he addressed the 25th Central Level Coordination Committee Programme in Hyderabad.

The 25th Central Level Coordination Committee (CLCC) Meeting was convened in Hyderabad, marking an important step in advancing policy dialogue and strengthening coordination across the rural financial ecosystem, the Rural Development Ministry said in a press release.

The meeting was chaired by Rural Development Minister and CLCC chairperson Shivraj Singh Chouhan.

According to the release, Chouhan emphasised the importance of strengthening bank linkage for SHGs and adopting a focused approach towards supporting individual women entrepreneurs. He stated that extending credit to SHG women is not a risk but one of the safest investments for the nation.

Highlighting the transformative potential of women-led enterprises, he expressed confidence that with collective support from all stakeholders, "Didis" can progress from Lakhpati to Crorepati, thereby accelerating women-led rural transformation and contributing significantly to the vision of Viksit Bharat.

- ANI

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Reader Comments

R
Rahul R
Rs 8,000 crore sounds like a lot, but when you consider the scale (nearly 10 crore women), it's a start. The real test will be in the implementation. Will the loans actually reach women in remote villages, or will they get stuck in bureaucracy? Hope the process is truly simple.
S
Shreya B
As a small business owner, I know how difficult it is to get a loan without collateral. If this scheme makes it easier for women like me to access capital without a male co-signer, it will be revolutionary. Jai Hind!
A
Aman W
While the intent is good, we must be careful. SHGs provide crucial social support and collective bargaining power. Individual loans could isolate some women. The focus should be on offering both options, not replacing one with the other.
M
Meera T
"From Lakhpati to Crorepati Didis" – I love that vision! Financial independence for rural women is the key to transforming our villages. My mother was part of an SHG; this new step could help her scale her pickle business. Fingers crossed!
D
David E
Interesting policy shift. Focusing on individual enterprise over group lending aligns with global microfinance trends that emphasize personal accountability and growth. The digital interface is a smart move for financial inclusion.

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