Tamil Nadu government to expand cooperative lending under Singapengal Entrepreneurship Credit Scheme

The Tamil Nadu government has decided to implement the Singapengal Entrepreneurship Credit Scheme by restructuring and broadening the scope of lending through cooperatives to include youth and marginalised sections of society as beneficiaries, apart from members of self-help groups (SHGs), to promote entrepreneurship.

According to sources, the State government has been providing loans to farmers, SHGs, destitute women, widows, and persons with disabilities through cooperative banks and credit societies. On July 2, Chief Minister C. Joseph Vijay chaired a review meeting of the Cooperation Department, during which he instructed officials to increase loans disbursed under the Singapengal Entrepreneurship Credit Scheme by 25% and expand the scheme to cover youth and marginalised sections of society, sources said.

Following this, an official communication was sent by the Registrar of Cooperative Societies to the Managing Director of the Tamil Nadu State Apex Cooperative Bank, the Managing Directors of all District Central Cooperative Banks, and all Regional Joint Registrars, directing them to increase lending to priority groups, including women, youth, and marginalised communities.

Instructions were also issued to ensure at least 30% of loans across all categories were extended to new members. Officials were directed to take steps to fully achieve the loan targets for SHGs and review loan applications received by cooperative banks and societies, including pending and rejected ones. The allocation for the new scheme is likely to be announced in the upcoming Budget.

In the run-up to the 2026 Assembly election, the Tamilaga Vettri Kazhagam (TVK) had promised to launch the Singapengal Empowerment Scheme, under which SHGs would be supported by facilitating the repayment of their existing loans and providing interest-free financial assistance of up to ₹5 lakh to enhance their productivity and sustainability. The party also promised that SHGs transitioning into registered micro, small and medium enterprises (MSMEs) would receive an annual grant of ₹5 lakh as a 100% subsidy to support their growth and expansion.