Odisha Extends Interest-Free Loan Scheme for Women SHGs, Raises Cap to ₹10 Lakh

Bhubaneswar: In a major step toward boosting women’s financial independence, the Odisha government has extended its interest-free loan scheme for women’s self-help groups (SHGs), allowing eligible groups to borrow up to ₹10 lakh without paying any interest.

The decision, approved by Chief Minister Mohan Charan Majhi, will see the scheme continue through the financial year 2025–26 and beyond, reinforcing the state’s commitment to promoting women’s entrepreneurship and economic empowerment.

Initially set to expire on March 31, 2025, the scheme’s extension comes as a welcome move for thousands of SHGs across rural and urban Odisha that rely on affordable credit to fund their livelihood activities and small businesses.

Chief Minister Majhi expressed confidence that the extended scheme will help build a stronger economic foundation for women, stating that it will contribute significantly to the creation of “Lakhpati Didis”—a reference to women entrepreneurs who earn at least ₹1 lakh annually.

“Empowering women financially not only uplifts individual families but also strengthens the state’s overall economy. This scheme will play a crucial role in encouraging entrepreneurship and self-reliance among women,” the CM said.

The scheme is expected to boost women’s participation in both rural and urban economic activities, further supporting Odisha’s goal of inclusive and sustainable development. By removing the burden of interest, the government aims to ease access to credit and encourage long-term investment in women-led ventures.