Over ₹11 Lakh Crore Loaned to Women SHGs by Banks in India
30 July 2025, New Delhi: India’s Union Minister for Agriculture and Rural Development, Shivraj Singh Chouhan, today highlighted a major milestone in the financial inclusion of rural women under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). Addressing the media, the minister stated that formal financial institutions have disbursed over ₹11 lakh crore in loans to women-led Self Help Groups (SHGs) across the country—a move he termed a “powerful stride towards inclusive rural development and self-reliance at the grassroots.”
Chouhan emphasized that this achievement reflects the Government of India’s strong commitment to empowering rural women and enabling economic independence under the leadership of Prime Minister Narendra Modi. Through community-based institutions facilitated by DAY-NRLM, rural women are being supported to start income-generating enterprises without the burden of collateral, while benefiting from subsidized interest and other financial support.
One of the program’s most notable indicators of success, the minister pointed out, is the exceptional loan repayment rate of over 98%. “This initiative has become a model of trust, discipline, and effective financial management at the community level,” he noted.
The Role of Banks and ‘Bank Sakhis’
Praising India’s banking ecosystem, Chouhan acknowledged the pivotal contribution of banks and “Bank Sakhis” (trained SHG members acting as grassroots banking facilitators) in bridging the rural financial gap. Their involvement has significantly streamlined the SHG-bank linkage process, facilitating smoother transactions and timely repayments.
Banks, under priority sector lending mandates, are offering easy-term loans to SHGs while ensuring simplified banking procedures and broader access to services. At the same time, integration of Aadhaar and mobile numbers with bank accounts and financial literacy campaigns are making banking more accessible and transparent for rural women.
Bank Sakhis are playing a frontline role—not only in processing loan applications and documentation but also in promoting financial awareness, insurance schemes, and pension enrolments within SHG networks. Community-based repayment mechanisms (CBRMs) are being institutionalized to further reinforce repayment discipline and accountability.
Women-Led Enterprises Driving Economic Change
Chouhan reiterated that this massive credit flow is enabling SHG members to start their own businesses, increase their incomes, and contribute to their families’ economic well-being. “With initiatives like DAY-NRLM and Lakhpati Didi, we are witnessing a silent but strong revolution in India’s villages. This is not just about numbers—it’s about the collective power of women who are transforming themselves into agents of change and driving India towards self-reliance,” he said.
Through sustained financial, technical, and institutional support, DAY-NRLM continues to uplift rural communities by fostering entrepreneurship and resilience among women—laying the foundation for a more inclusive and empowered India.
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