The Andhra Pradesh government on Friday revived the ''zero interest'' loan scheme for women self-help groups (SHGs) in the state. Chief Minister Y S Jagan Mohan Reddy re-launched the scheme by releasing a sum of Rs 1,400 crore for the SHGs. The decision is expected to benefit over 8.78 lakh SHGs in the state involving over 93.80 lakh women.
Under the scheme, each SHG will receive sums ranging from Rs 20,000 to Rs 40,000 towards the interest component on their loans, said a press release from the Chief Minister’s Office. The zero interest scheme was first launched by Chief Minister N Kiran Kumar Reddy in united Andhra Pradesh in 2011, under which the state government bore the interest burden on loans extended to the women SHGs.
However, after the state bifurcation, the state government then led by the Telugu Desam Party had scrapped the scheme in 2016-17. Shortly before state elections in April 2019, the then Chief Minister N Chandrababu Naidu had gifted 10,000 smartphones and health cards to the SHGs.
A zero-interest loan to SHGs was a poll promise of the YSRCP. The party, before the polls, had also promised to waive off all loans pertaining to women cooperative societies.
Shortly after coming to power in 2014, Naidu had also waived off Rs 45,000 crore worth loans of SHGs.
The SHG women presently secure loans from banks at an interest rate of 7% to 13%. The present state government will now carry the entire interest burden.
Interacting with some of the SHG members via a video link, Chief Minister Jagan said he was re-introducing the scheme despite the severe financial hardships 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 July 8 as the programme got postponed due to the COVID-19 pandemic.
(With PTI inputs)