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Andhra Pradesh govt okays Rs 905 cr interest-free loans schemes

Thursday, 26 Nov 2020
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Chief Minister of Andhra Pradesh YS Jagan Mohan Reddy launched Jagananna Thodu, a scheme to provide interest-free loans to over nine lakh small traders for about Rs 905 crore.

The vendors will be accompanied by volunteers and welfare assistants of village/ward secretariats to provide a helping hand right from identifying beneficiaries, taking their applications to arranging loans.

Through this scheme, about Rs 1,000 crore is being lent to nearly 10 lakh beneficiaries, where the government will be paying interest of Rs 60-100 crore annually, and if it is taken for 10 years, it will be Rs 1,000 crore.

The government is implementing the scheme in collaboration with bankers to better the lives of small traders and vendors. The banks will credit the loan amount of Rs 10,000 to the beneficiaries’ accounts within a week or 10 days.

The beneficiaries will also be provided with QR-based smart ID cards and if they repay the loan amount in the given timeline, the state government will reimburse the interest once in every three months directly to the beneficiaries’ accounts, and further, they will be eligible to take the next loan.

Vegetable vendors, fruit vendors, small shopkeepers, pushcart vendors, and traditional artisans are eligible to apply for the scheme. If any eligible person was not covered in this scheme, they can apply through volunteers, and upon verification, they will be provided with the scheme benefits in a month or two.

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