AP Tops India For Linking SHG-Bank Linkage With ₹15,229 Crore Credit Disbursement
The minister pointed out that digital reforms are being introduced to improve transparency: Reports
VIJAYAWADA: Andhra Pradesh has emerged as top performer in the country for linking self-help groups (SHGs) with banks, with ₹15,229.40 crore in credit disbursement and an outstanding loan portfolio of ₹82,639.56 crore as on September 15, 2026.
Quoting the latest National Rural Livelihoods Mission (NRLM) data on Friday, MSMEs and Rural Poverty Alleviation minister Kondapalli Srinivas said as per the vision of Chief Minister N. Chandrababu Naidu, the state government is focusing on ensuring that credit to SHGs becomes a tool for sustainable livelihoods, higher family incomes and women’s financial independence.
The minister pointed out that digital reforms are being introduced to improve transparency and prevent fake memberships and diversion of funds. Aadhaar-based biometric authentication and membership verification is strengthening financial security, while the Unique Registration Number (URN) system is providing every SHG with a distinct digital identity, thereby improving transparency in transactions.
Srinivas pointed out that the government had reduced the financial burden on SHGs by cutting registration and service charges, resulting in annual savings of up to ₹32,500 per SHG group. Interest rates, earlier ranging from 7 to 14.50 per cent have been standardised and brought down to between 7 and 11.70 per cent.
Through Annual Credit and Livelihood Plan (ACLP) and Micro Credit Plan (MCP), priority is being given to agriculture, livestock, and micro enterprises. Under DAY-NRLM guidelines, collateral-free loan limit for SHGs has been raised from ₹10 lakh to ₹20 lakh.
The minister said in 2024–25, ₹30,079 crore have been disbursed against a target of ₹32,190 crore, with 93 per cent achievement. In 2025–26, the state achieved 99 per cent of its target. During 2026–27, ₹15,229 crore have already been disbursed by September against the annual target of ₹19,655 crore, already achieving 78 per cent of the target.
Srinivas underlined that the state has achieved more than 90 per cent of its targets in the previous two financial years. He expressed confidence that the current year’s target would also be achieved through coordination among banks, SERP, and SHG federations.