Upbeat over the presence of a large crowd at his mass contact programme ‘Rachabanda' here on Friday, Chief Minister N. Kiran Kumar Reddy announced full waiver of interest on bank linkage loans up to Rs. 5 lakh from January 1, for women members of self-help groups who repay the loan on time.
The government would bear the financial burden on this count, he declared and expressed hope that the ‘landmark decision' would radically alter the rural credit scenario and bolster the ongoing SHG movement in the State.
He said the ‘grand success' of the meeting in the Lok Sabha constituency represented by Telangana Rashtra Samiti (TRS) president K. Chandrasekhar Rao, amidst the movement for separate Telangana, indicated that people in the region preferred development.
Mr. Reddy, however, lost his cool when some women shouted that they did not want Re. 1 per-kg-rice scheme and sought reduction of prices of essential commodities. He advised them to return their ration cards in that case. A State-level committee would be constituted soon to control prices, he said.
The Chief Minister said loan amounts would hereafter be transferred directly to the accounts of SHG members. Further, loans up to Rs. 15,000 would be granted to an SHG member from ‘Stree Nidhi' bank within 48 hours of applying for it.
Showering sops on farmers, he said loans up to Rs. One lakh would be allowed to each of the 95 lakh farmers during the next kharif, amounting to Rs. 31,000 crore, under zero-interest loan scheme.
Dwelling on his pet scheme, Rajiv Yuva Kiranalu, he instructed district Collector M. Purushotham Reddy to provide jobs to 50,000 youths in the district and not 30,000 as decided earlier.