Transgenders in Telangana Struggle for Livelihood Loans

Hyderabad: Transgender individuals in Telangana working as drivers, tailors and beauticians continue to struggle for financial independence, as banks deny them livelihood loans — even those sanctioned through the women development and child welfare department. Many applicants are still waiting for approvals under the Economic Rehabilitation Scheme for Transgenders.

Samanta, a transgender woman passionate about driving, is among them. Once a lorry driver, she suffered heavy losses and moved to Hyderabad, buying an auto for Rs 3 lakh. “I earn Rs 1,000 to Rs 3,000 a day, depending on work. After paying my loan, rent and expenses, I barely manage. I drive for 20 hours a day and sleep for just four. If hardworking transgenders like me are given fair loans or 2BHK houses, we can live with dignity,” she said.

Under the current scheme, transgender beneficiaries are eligible for two types of loans — bank linkage loans of Rs 2 lakh (with Rs 1.4 lakh provided by the government and Rs 60,000 by banks, repayable in five years) and non-bank linkage loans of Rs 50,000, distributed directly after scrutiny by district committees headed by collectors.

A transgender community representative working with the government said banks often reject applications for lack of fixed addresses or income proof. “Managers demand physical verification, but most of us live in rented houses and move frequently. This stops approvals midway,” the source said. To address this challenge, discussions are underway to discontinue bank linkage loans and raise the non-bank loan amount from Rs 50,000 to Rs 75,000 to ensure faster and simpler disbursement.

Activist Chandramukhi, who has long advocated for the community, said, “I wanted to start an agarbatti unit but knew it was impossible through banks. Even with departmental support, the process is stuck. We are asking the government to support us after skill training — whether in tailoring, driving or beauty courses — until loans are made accessible.” The community hopes that the government will move beyond training and help transgender individuals take the next step — becoming self-reliant entrepreneurs.