Chief Minister Y.S Jagan Mohan Reddy has said that small and petty vendors will be hand held by the government so that they do not fall prey to money lenders who charge them exorbitant interest for hand loans.
The State government credited ₹370 crore to 3.7 lakh small traders towards interest-free loans, under the second phase of Jagananna Thodu scheme.
Mr. Jagan said that small and petty vendors, artisans needn’t approach private parties for loans, as they can take loans from banks under Jagananna Thodu scheme to cater to their working capital.
Although 9.05 lakh beneficiaries were identified for the scheme, in the phase-1, only ₹535 crore was disbursed by the banks to 5.35 lakh beneficiaries, despite the government offering to pay the interest. As these vendors come under the unorganised sector, the banks don’t provide loans and they end up approaching private parties, take loans at high-interest rates to run their businesses, and often fall into debts.
In order to resolve this, the State government has decided to extend financial assistance to remaining 3.7 lakh beneficiaries through Sthreenidhi Credit Cooperative federation and APCOB covering all the eligible beneficiaries by sanctioning loans in rural and urban areas, the Chief Minister said, adding that ₹.49.77 crore was being borne by the government under the scheme towards paying interest.
“Jagananna Thodu scheme will bring a change in the lives of small and petty vendors, as the government is relieving them from paying heavy interests, and if they repay the loan amount in the given timeline, the State government shall reimburse the interest directly to the beneficiaries’ accounts, and further, they will be eligible to take the next loan,” said Mr. Jagan.
The Chief Minister said vegetable vendors, fruit vendors, small shopkeepers, pushcart vendors, and traditional artisans were eligible to apply for the scheme and if any eligible person was not covered in this scheme, they could still apply through volunteers, and upon verification, they would be provided with the scheme benefits in a month or two. Also, they can call the 1902 toll-free number to get enrolled.
