Zero Interest Loan Scheme for Women SHG’s by Andhra Pradesh Govt
Jagan Mohan Reddy re-launches zero interest loan scheme for Women SHGs
Why in News?
Andhra Pradesh (AP) Chief Minister (CM) Y.S. Jagan Mohan Reddy On April 24, 2020 re-launched zero interest loan scheme for Women Self-Help Groups(SHGs) forr women welfare.
- Governor– Biswabhushan Harichandan
- State Dance– Kuchipudi
- State Tree– Neem
About the scheme
- The zero interest scheme first time launched in 2011 by Former Chief Minister N Kiran Kumar Reddy in the united Andhra Pradesh
- Under this scheme Andhra Pradesh State govt pays interest on loans extended to the women SHGs
- Chandrababu Naidu-led government halted the scheme in 2016-17 after bifurcation
- Pavala Vaddi (25 paise) introduced by Former CM YS Rajasekhara Reddy when the interest on SHG loans was about Rs 1, & later the scheme was modified to offer interest-free loans.
- Each SHG will receive a sum ranging from Rs 20,000 to Rs 40,000 towards the interest component on their loans.
- Currently rate of interest is of 7 to 13% from banks by SHG
- 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.
Other initiative to 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.