₹11 Lakh Crore in Loans Disbursed to SHGs Under DAY-NRLM: A Rural Milestone

In a landmark announcement that highlights the transformative power of women-led rural development, Union Minister for Agriculture, Farmers’ Welfare and Rural Development, Shri Shivraj Singh Chouhan, revealed that loans exceeding ₹11 lakh crore have been disbursed to women-led Self-Help Groups (SHGs) under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). This achievement, the Minister emphasized, is a resounding testament to the Indian government’s commitment to financial empowerment, self-reliance, and inclusive rural progress.

The announcement was made in the backdrop of India’s ongoing efforts to strengthen community-led economic development, with a special focus on poor and marginalized women in villages.

Financial Empowerment Through Community Institutions

Under the Ministry of Rural Development’s DAY-NRLM, millions of rural women have come together to form robust, self-sustaining SHGs, which serve as vehicles for economic growth, entrepreneurship, and social mobility. These SHGs are supported by formal financial institutions that provide them with:

• Collateral-free loans

• Interest subvention (subsidized interest rates)

• Capacity-building and financial literacy support

With a repayment rate of over 98%, these groups are showcasing exemplary financial discipline and responsible credit behavior. The numbers highlight the credibility of SHGs and the effectiveness of the institutional framework governing them.

Role of Banking Partners and 'Bank Sakhis'

Shri Shivraj Singh Chouhan lauded the role of banking institutions in facilitating SHG-bank linkages, particularly under priority sector lending mandates. He credited the “Bank Sakhis”—women selected and trained from within the SHG community—as being the unsung heroes in streamlining rural banking services. These women:

• Assist with loan applications and documentation

• Support digital transactions and mobile banking

• Create awareness on financial schemes, insurance, and pensions

• Help implement the Community-Based Repayment Mechanism (CBRM)

By acting as intermediaries between banks and SHGs, Bank Sakhis have become pillars of trust and accessibility in India's financial inclusion journey.

Technological Integration and Simplified Access

The government’s approach has been multi-faceted, incorporating digital infrastructure to make banking more accessible for rural women. Some major steps include:

• Aadhaar seeding of bank accounts

• Mobile banking adoption

• Digital literacy drives

These digital initiatives ensure transparency, faster processing, and help bring rural women into the formal financial fold. With a focus on user-friendly banking processes, the initiative empowers women to own and manage their financial growth.

Strengthening Repayment Ecosystem

The government has also placed significant emphasis on fortifying loan recovery and repayment support systems to ensure long-term sustainability. Through CBRM and enhanced SHG monitoring, timely repayments are being encouraged while nurturing a culture of accountability.

This mechanism is further bolstered by community mobilizers and digital monitoring systems, ensuring that repayment is not just a procedural requirement but an empowering process of responsible financial behavior.

Lakhpati Didi and the Rise of Rural Women Entrepreneurs

The Minister also underlined the synergy between DAY-NRLM and the visionary ‘Lakhpati Didi’ initiative, which aims to create at least one woman earning over ₹1 lakh annually in every rural household. The program promotes:

• Micro-enterprise development

• Skill upgradation and training

• Market linkages for SHG products

• Support for value addition and branding

Together, these programs are laying the groundwork for women-led economic transformation, wherein SHG members evolve from micro-entrepreneurs to successful businesswomen and community leaders.

A Symbol of Collective Strength

In his closing remarks, Shri Shivraj Singh Chouhan stated,

“This achievement of ₹11 lakh crore is not merely a statistic—it is a powerful symbol of collective strength. When women are given trust, resources, and opportunity, they don’t just change their households—they lead the nation forward.”

He added that the government remains committed to supporting rural women's entrepreneurship, enabling them to take center stage in nation-building and grassroots governance.

With India’s SHG model now admired globally for its scalability, discipline, and social impact, the ₹11 lakh crore milestone reaffirms the DAY-NRLM framework as one of the world’s most successful rural financial empowerment models.