CM Vijay launches Rs 3,000 cr SHG credit drive in Erode
Synopsis
Tamil Nadu CM C. Joseph Vijay launched a Rs 3,000 crore credit-linkage programme for 26,000 women SHGs at Perundurai, Erode, on 3 November 2026, handing over initial orders worth Rs 1,110 crore to 9,000 groups along with livelihood funds, skill-training sanctions, and retail outlet approvals.
Key Takeaways
Rs 3,000 crore total credit-linkage programme announced for 26,000 women SHGs across Tamil Nadu.
Initial tranche of Rs 1,110 crore disbursed to 9,000 SHGs at the launch event in Perundurai, Erode district .
Implemented by the Tamil Nadu Corporation for Development of Women under the Rural Development and Panchayat Raj Department.
Programme also covers livelihood assistance funds , youth skill-training sanction orders , and approvals for SHG product retail outlets .
Remaining credit linkages to 17,000 additional SHGs will be disbursed in phases statewide.
Initiative builds on India's SHG-Bank Linkage model established by NABARD in 1992 and aligns with the national DAY-NRLM framework.
Three thousand crore rupees, 26,000 women's self-help groups, and a single ceremony in a textile-belt town — Tamil Nadu Chief Minister C. Joseph Vijay turned Perundurai, Erode district, into the launchpad for one of the state's largest single-day credit-linkage pushes for rural women entrepreneurs on 3 November 2026.
At a function organised by the Tamil Nadu Corporation for Development of Women (TNCDW) — the state body under the Rural Development and Panchayat Raj Department that drives microfinance and SHG programming — the Chief Minister handed over initial credit-linkage orders worth Rs 1,110 crore to 9,000 SHGs as the opening tranche of the full Rs 3,000 crore programme. The remaining linkages will roll out to the balance 17,000 groups in phases across the state.
What the Rs 3,000 crore programme covers
Beyond the headline credit figure, the Chief Minister also distributed livelihood assistance funds to SHG members, issued sanction orders for youth skill-training programmes, and cleared approvals for setting up retail outlets dedicated to SHG products — giving women's collectives a direct market channel for goods they produce. The combination of credit, skills and market access reflects a deliberate three-lane approach: money to start, training to build capacity, and shelf space to sell.
The TNCDW's mandate spans exactly these three lanes. Operating under the state's Rural Development and Panchayat Raj Department, the corporation links informal women's savings circles to formal bank credit — a model with roots in NABARD's SHG-Bank Linkage Programme launched nationally in 1992, which remains the world's largest microfinance initiative by group count.
Erode as the launchpad — and why it signals intent
Erode district sits at the heart of Tamil Nadu's western textile and agricultural belt — home to the country's largest turmeric market and a dense network of cottage-industry and handloom units. Selecting Perundurai as the venue for a statewide women-enterprise credit drive is not incidental: the district already hosts significant SHG activity woven into its textile supply chains, and a high-visibility launch here telegraphs that the programme is aimed squarely at productive, income-generating enterprise rather than subsistence credit alone.
Tamil Nadu's long SHG arc — and what to watch next
Tamil Nadu has been among India's most consistent states in scaling SHG credit since the 1990s, with successive administrations announcing periodic large-scale linkage rounds alongside the national Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) framework. Today's announcement continues that arc — but the watch items are concrete: the phased disbursement of the remaining credit orders to the outstanding 17,000 groups, and whether the newly sanctioned retail outlets for SHG products actually open and sustain footfall beyond the launch window.
For tens of thousands of women running small enterprises across Tamil Nadu's villages, today's orders are not a press release — they are a bank account about to get a lot more useful.
Point of View
000 crore targeting 26,000 SHGs — places it among the larger state-level microfinance pushes in Tamil Nadu's recent history, signalling that the current administration is anchoring its rural welfare narrative firmly in women's economic agency rather than welfare transfers alone. Coupling credit with skill-training mandates and retail outlet approvals is a more integrated model than credit disbursement in isolation, though execution quality on the market-linkage side has historically been the weak link in similar programmes nationwide. The choice of Erode — a commercially active district with strong SHG penetration — suggests a deliberate optics strategy: demonstrate enterprise outcomes, not just beneficiary numbers. Whether the phased rollout to the remaining 17,000 groups maintains momentum, and whether the sanctioned retail outlets become viable, will determine if this becomes a policy landmark or another headline-without-follow-through.
NationPress
4 Nov 2026
Frequently Asked Questions
What is the Rs 3,000 crore SHG scheme announced by Tamil Nadu CM?
It is a statewide credit-linkage programme under which Rs 3,000 crore in bank financing will be made available to 26,000 women self-help groups across Tamil Nadu to support entrepreneurship. CM C. Joseph Vijay launched it at Perundurai, Erode, on 3 November 2026, handing over an initial Rs 1,110 crore to 9,000 groups.
Who organises Tamil Nadu's SHG credit-linkage programmes?
The Tamil Nadu Corporation for Development of Women (TNCDW), a state government body under the Rural Development and Panchayat Raj Department, organises and implements these programmes by linking women's self-help groups with formal bank credit.
How many SHGs will benefit from this Tamil Nadu programme?
A total of 26,000 women self-help groups are set to benefit. In the first phase, 9,000 groups received credit orders worth Rs 1,110 crore at the Perundurai launch event; the remaining 17,000 groups will be covered in subsequent phases.
What else was announced at the Perundurai event besides the credit linkage?
CM Vijay also distributed livelihood assistance funds to SHG members, issued sanction orders for youth skill-training programmes, and granted approvals for setting up retail outlets to sell products made by self-help groups.
What is the SHG-Bank Linkage model that Tamil Nadu uses?
The SHG-Bank Linkage model, pioneered nationally by NABARD in 1992, connects informal women's savings-and-credit circles with formal banks, enabling them to access larger loans for income-generating activities. Tamil Nadu has been one of India's leading states in scaling this model.
