AP’s ₹905-cr interest-free loans schemes to street vendors, small businesses

Our Bureau Hyderabad | Updated on November 25, 2020 Published on November 25, 2020

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Wednesday launched Jagananna Thodu, a scheme to provide interest-free loans to over to nine lakh small traders for about ₹905 crore.

Speaking after launching the scheme in Amaravati, the Chief Minister said small and petty vendors, artisans needn’t approach private players for loans at high interest rates and can avail loans from banks under Jagananna Thodu scheme.

As the vendors come under unorganised sector, the banks don’t provide loans and end up approaching private parties at high-interest rates, he said.

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

The government is implementing the scheme in collaboration with bankers to better the lives of small traders and vendors. The banks shall credit the loan amount of ₹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 shall reimburse the interest once in every three months directly to the beneficiaries’ accounts, and further, they will be eligible to take the next loan.

The vegetable vendors, fruit vendors, small shopkeepers, pushcart vendors, and traditional artisans are eligible to apply for the scheme and 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.

Also, they can call on the 1902 toll-free number to get enrolled, according to a release.

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Published on November 25, 2020
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