Small traders to get an interest-free loan of Rs 10,000 to meet their working capital needs.
On Wednesday, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has launched the Jagananna Thodu scheme, through which Rs 905 crore worth interest-free loans have given to 9.05 lakh small traders.The officials say small, petty vendors and handicrafts workers can obtain loan from banks to meet their working capital needs.
While speaking at the meet, the Chief Minister said without these small traders, our livelihood and economy would be at risk.During his thousand kilometres of padayatra, Jagan witnessed the hardships of small vendors and artisans and thus, decided to bring this scheme forward.
According to the scheme, the banks will credit the loan amount of Rs 10,000 to the beneficiaries’ accounts within a week or ten days.The State government, in collaboration with the banks, is implementing the scheme.
For this, the government is paying Rs 60 crore to Rs 100 crore annually for lending about Rs 1,000 crore to nearly 10 lakh people.The State government will reimburse the interest once every three months if the beneficiaries repay the loan on time.
They would also be eligible to take the next loan, say the officials.
