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Business
Andhra Pradesh Leads India in SHG‑Bank Linkage, Disburses ₹15,229 crore Credit
✍️ Deccan Chronicle
🗓 03 Oct 2026, 02:17 AM
👁 10
Andhra Pradesh has emerged as the top state in India for linking self‑help groups with banks, resulting in a credit flow of ₹15,229 crore, according to the Deccan Chronicle.
Andhra Pradesh has topped the nation in the self‑help group (SHG) to bank linkage programme, with a total credit disbursement of ₹15,229 crore reported by the state finance department. The figure reflects the cumulative loans extended to SHGs that have been formally connected to formal banking institutions under the state’s financial inclusion drive.
The SHG‑bank linkage scheme, a cornerstone of rural credit policy, aims to bring organised micro‑finance to women‑led groups in villages. By linking these groups to banks, the government seeks to lower transaction costs, improve loan recovery and expand access to affordable credit for income‑generating activities.
The massive credit outflow underscores Andhra Pradesh’s aggressive push to deepen financial penetration in its rural hinterland. Officials say the disbursement is expected to boost agricultural investment, small‑scale enterprises and overall household consumption, thereby supporting the state’s broader economic growth targets.
Data released by the state’s finance ministry indicates that the ₹15,229 crore figure surpasses the combined totals of all other Indian states, positioning Andhra Pradesh as a benchmark for other regions pursuing similar inclusion initiatives.
The SHG‑bank linkage scheme, a cornerstone of rural credit policy, aims to bring organised micro‑finance to women‑led groups in villages. By linking these groups to banks, the government seeks to lower transaction costs, improve loan recovery and expand access to affordable credit for income‑generating activities.
The massive credit outflow underscores Andhra Pradesh’s aggressive push to deepen financial penetration in its rural hinterland. Officials say the disbursement is expected to boost agricultural investment, small‑scale enterprises and overall household consumption, thereby supporting the state’s broader economic growth targets.
Data released by the state’s finance ministry indicates that the ₹15,229 crore figure surpasses the combined totals of all other Indian states, positioning Andhra Pradesh as a benchmark for other regions pursuing similar inclusion initiatives.