Andhra Pradesh govt re-launches zero interest loan scheme for women SHGs; releases Rs 1,400 cr

Amaravati (AP): The Andhra Pradesh government on Friday revived the ‘‘zero interest’’ loan scheme for women self-help groups (SHGs) in the state. Chief minister YS Jagan Mohan Reddy re-launched the scheme at his residence here by releasing a sum of Rs 1,400 crore to 8.78 lakh SHGs. Under the scheme, each SHG will receive sums ranging from Rs 20,000 to Rs 40,000 towards the interest component on their loans, a CMO release said. [caption id=“attachment_6013191” align=“alignleft” width=“380”] Representational image. Reuters[/caption] The zero interest scheme was first launched by the then chief minister N Kiran Kumar Reddy in the united Andhra Pradesh in 2011, under which the state government bore the interest burden on loans extended to the women SHGs. After the state bifurcation, the Chandrababu Naidu-led government had disbanded the scheme in 2016-17. In line with his election-eve promise last year, Jagan re-launched the zero interest scheme that would benefit about 91 lakh members of SHGs. The SHG women were currently securing loans from banks at an interest rate of 7 to 13 percent. The state government will now carry the entire interest burden. Interacting with some of the SHG members via a video link, the chief minister said he was re-introducing the scheme despite the severe financial hardship being faced by his government. “I thank God for giving me this opportunity,” the CMO release quoted Jagan as saying. The zero interest scheme would prove beneficial to the women SHGs, he said and listed out the slew of schemes launched by his government for the welfare of women. The chief minister announced that house-sites would be distributed to over 27 lakh women on 8 July as the programme got postponed due to the COVID-19 pandemic.