Keen on lowering cost of capital and improving access to funds for enterprises, Telangana has readied a roadmap under which it will evaluate a range of measures, from offering interest subvention, equity guarantee scheme and facilitating an information exchange platform.
Forming part of Telangana Rising Vision 2047 document that will be launched in a little over a week from now, the roadmap is set to be an enabling layer beyond the ease of going business (EODB) measures for businesses. Telangana can shift from a collateral-based lending to a cash-flow and data-driven credit ecosystem amid firms formalising through the TG-iPASS single window approval system and digital adoption deepening.
By reducing capital costs, widening access to unsecured financing and empowering high-productivity, asset-light firms, the State can bridge the ‘missing middle’ and spark a new phase of industrial acceleration. In doing so, its focus will be to build an ecosystem where micro, small and medium enterprises (MSMEs) scale faster, attract capital and emerge as global leaders, the document showed.
Single window for lenders
The proposed information exchange will be a dynamic, API-enabled platform integrating GST, PF/TDS, supplier-payment timeliness and compliance data. It will serve as a secure, machine-readable ‘single window’ for lenders enabling comprehensive and comparable borrower profiles. The State will publish a borrower scorecard derived from anonymised, multi-source data giving better insights on the perceived credit risk thus expanding lender participation and accelerating loan approvals without exposing sensitive underlying data.
Telangana will also consider launching a partial equity-guarantee facility for VC, PE and angel investments, in which the government absorbs a defined share of downside risk. This will lower risk-adjusted return thresholds and crowd-in substantially higher volumes of private capital to benefit high-growth SMEs and startups.
Expanding access to venture debt and specialised MSME lending through accredited NBFC partners will be evaluated. Guarantee pricing and eligibility will be linked to corporate governance quality, transparency, and timely statutory compliance, incentivising firms to formalise and professionalise as they scale, which in turn will bolster Telangana’s overall investment trust environment, per the vision document.
Subsidise portion of interest costs
On the proposed interest subvention scheme, the government said Telangana will subsidise a portion of interest costs to reduce effective borrowing rate for long gestation, capital-intensive infrastructure projects. This is expected to improve financial viability and attract private investment in industrial parks, logistics systems, urban transport and utility infrastructure projects, particularly within spatially earmarked growth nodes such as the Regional Ring Road influence zones, Hyderabad–Warangal–Karimnagar–Khammam industrial arc, Kakatiya Mega Textiles Park, Pharma City and cluster-based urban expansions.
The document mentions multiple interventions, including how the State can reduce collateral cost by fixing property-title risk – by an indemnity guarantee fund to reduce litigation uncertainty. This will boost credibility of land assets, lower lender risk premiums and enable more affordable infrastructure and real-estate–backed financing, especially across industrial land banks, brownfield redevelopment zones and designated transit-oriented development areas in Tier 2 cities.
The State’s will also look to unlock projects stalled or delayed and rendered unviable due to high weighted average cost of capital into bankable investments. Building on the Dharani and CCLA systems, it will transition from digital records to legally guaranteed ownership, enabling faster collateral validation, streamlined due diligence and lower project appraisal costs.
Global fintech capital
Telangana aims to shape Hyderabad into a global fintech capital with a multi-pronged approach, including by developing ‘Banking Ops 2.0 Zone’ in Gachibowli; offering incentives for major banks and strong regional NBFCs to establish headquarters or regional command centers thus improving local credit responsiveness and deepening financial inclusion; as well as embed fintech specialisations into engineering education.
Published – November 29, 2025 11:51 pm IST
