Former Andhra Pradesh Chief Minister and YSR Congress Party President, Y.S. Jagan Mohan Reddy, criticized the coalition government led by Chief Minister Chandrababu Naidu for the decrease in bank credit growth for Self-Help Groups (SHGs) over the past two years. He highlighted that the credit to SHGs, which was Rs. 49,626 crore in 2023-24 under the YSRCP’s rule, has dropped to Rs. 41,623 crore in 2024-25 and further to Rs. 41,105 crore in 2025-26 under the TDP’s rule. Jagan Mohan Reddy referred to this as a failure of the TDP-led NDA government’s promise to women.
He pointed out that the coalition government had pledged in its election manifesto to raise the loan limit eligible for the SHG loans interest subvention scheme from Rs. 3 lakh to Rs. 10 lakh. Jagan Mohan Reddy used social media to criticize the government for the decline in credit growth to SHGs. He emphasized the importance of credit growth for SHGs in bolstering the rural economy and expressed concern over the negative implications of declining credit growth on investments, incomes, and consumption.
Jagan Mohan Reddy highlighted the significance of interest subvention to SHG loans for promoting credit growth and mentioned the substantial support provided by the YSRCP Government to the SHG sector through various programs. He criticized the TDP-JSP alliance for failing to fulfill their commitment to increase the loan limit for SHG loans interest subvention. Jagan Mohan Reddy estimated that beneficiaries were deprived of around Rs. 6,000 crore due to the lack of support from the TDP alliance Government in the first two years.
