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Jagan Mohan Reddy re-launches zero interest loan scheme for Women SHGs

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On April 24, 2020 Andhra Pradesh (AP) Chief Minister (CM) Y.S. Jagan Mohan Reddy re-launched zero interest loan scheme for Women Self-Help Groups(SHGs) by releasing a sum of Rs 1,400 crores to 8.78 lakh SHGs (to benefit about 91 lakh members) for the welfare of women.AP govt re-launches zero interest loan schemeKey Points

i.Each SHG will receive a sum ranging from Rs 20,000 to Rs 40,000 towards the interest component on their loans.

ii.Currently SHG are securing loans from banks at an interest rate of 7 to 13%.

iii.The State will also distribute house-sites to over 27 lakh women on July 8 as the programme got postponed due to the Covid-19 pandemic.

About the scheme

  • The zero interest scheme was first launched by Former Chief Minister N Kiran Kumar Reddy in the united Andhra Pradesh in 2011, under which the state government borne the interest burden on loans extended to the women SHGs. But, after the state bifurcation, the Chandrababu Naidu-led government stalled the scheme in 2016-17.
  • Former CM YS Rajasekhara Reddy introduced the ‘Pavala Vaddi’ (interest at 25 paise) scheme when the interest on SHG loans was about Rs 1, & later the scheme was modified to offer interest-free loans.

Other initiative for women SHG
CM has created a major employment opportunity to women SHG who are familiar with tailoring, by ordering masks of 3.5 masks per head, by this project over 40,000 women have been working & are earning about Rs 500 a day.

About AP:
Governor– Biswabhushan Harichandan
State Dance– Kuchipudi
State Tree– Neem