Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday released ₹3,000 crore in bank-linked credit to 26,000 members of women’s self-help groups (SHGs) across the state, reported Press trust of India. The distribution took place at Kanjikovil Pirivu in Perundurai, Erode district, where more than 9,000 SHG members from the district received Rs 1,110 crore of the total package.
The initiative is designed to improve access to formal finance for women-led collectives, many of which operate small businesses in food processing, textiles, handicrafts, agriculture-linked products and household manufacturing. Officials described the credit push as both an economic measure and a statement of intent, as the government wants women’s groups to move beyond subsistence activity and become more visible contributors to the state economy.
The Perundurai event also turned into a showcase of the range and creativity of Tamil Nadu’s women-led businesses. Before the formal distribution, the Chief Minister walked through an exhibition featuring products prepared by SHGs from several districts, including traditional dolls, processed farm produce, indigenous handicrafts, millet-based snacks, ghee, bamboo utility items, natural-fibre clothing and handloom bedspreads.
Among the exhibits was traditional Toda tribal embroidery displayed by the Paalmalar group from the Nilgiris. The Chief Minister also interacted with members of collectives from Kanyakumari, Tiruvannamalai and Erode, examining products ranging from decorative palm-leaf art to eco-friendly home décor made from banana fibre.
The event offered a rare moment of direct engagement between the state’s leadership and women entrepreneurs whose work often remains confined to local markets. Vijay watched members of the Carmel Annai group create banana-fibre products and observed a pottery demonstration by the Veeramangai Velu Nachiyar group. He later purchased a finished banana-fibre item and a wooden sculpture carved in his likeness, paying the craftswomen directly.
The scale of the credit release is significant. Erode district alone accounted for Rs1,110 crore, or more than one-third of the statewide amount, reflecting both the district’s large SHG network and the government’s decision to hold the event there. The remaining funds were distributed to eligible members across Tamil Nadu.
Officials said the programme is intended to encourage women’s collectives to expand their role in the economy and to recognise the talent within them. The emphasis on bank-linked credit, rather than direct grants, suggests a longer-term approach: connecting SHGs with formal financial institutions so that enterprises can build credit histories and access larger loans in future.
The exhibition in Perundurai indicated that many groups already possess strong products; the task is to help them find buyers beyond their immediate neighbourhoods.
For now, the Rs 3,000-crore announcement has given Tamil Nadu’s SHG movement a major financial push.
(With inputs from media reports)