Odisha pays Rs 99.26 crore loan interest support to 1.8 lakh women's SHGs

Odisha's Deputy Chief Minister Pravati Parida released Rs 99.26 crore in interest subvention to 1,79,809 women's self-help groups (SHGs) on Tuesday, October 6, 2026, at a programme of the state's Mission Shakti Department in Bhubaneswar. Interest subvention means the state pays part or all of the interest on bank loans taken by these groups. With this release, the government has paid Rs 247.03 crore under the scheme so far in 2026-27, out of a budget of Rs 575 crore for the year. At the same event, the department released Rs 151.28 crore under community-based financial support schemes and signed two agreements: one to strengthen the Lakhpati Didi programme and one to promote green enterprises run by women's groups.

For a woman running a small dairy, tailoring unit or food business through a self-help group, the cost of credit can decide whether the business grows or stalls. When the state covers the interest on SHG bank loans, members keep more of what they earn and can borrow again with confidence. The October 6 release reached nearly 1.8 lakh groups; on average, that works out to a little over Rs 5,500 per group, money that would otherwise have gone towards interest.

The credit target matters as much as the subsidy. A goal of Rs 20,000 crore in bank loans for SHGs in a single year signals that the state wants women's groups to move beyond small savings-and-lending circles towards larger, bank-backed businesses. The Lakhpati Didi initiative, meant to raise the incomes of SHG members, depends on exactly this kind of steady access to credit, training and markets.

The green-enterprise agreement points to a newer path. Clean energy work could give rural women's groups a foothold in a growing sector rather than only in traditional livelihoods.

The event was also a statement about leadership. "I am confident that Nari Shakti will lead the development journey of Odisha in the coming years," Parida said. As Deputy Chief Minister overseeing the Mission Shakti Department, she has made SHG finance a visible part of its work. The real test will be whether loans translate into lasting incomes and whether more women from these groups go on to lead enterprises, cooperatives and local institutions.

Short-term: Nearly 1.8 lakh SHGs receive interest support, lowering the cost of their existing bank loans and freeing money for their businesses.

Long-term: If the Rs 20,000 crore credit target is met and the new agreements work, more women's groups could scale up into enterprises earning steady incomes, including in clean energy.

Who is affected: Women members of SHGs across Odisha, banks lending to these groups, the Mission Shakti Department, and rural households whose income depends on women-led enterprises.

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