Chief Minister Y.S. Jagan Mohan Reddy on Wednesday launched the Jagananna Thodu scheme under which an amount of ₹905 crore was deposited into the bank accounts of 9.05 lakh small traders towards provision of interest-free loan.
“From now on, small and petty vendors, and artisans needn’t approach private persons for loan and burden their lives by paying heavy interest. They can now obtain loan from the banks under the Jagananna Thodu scheme for meeting their working capital needs,” said Mr. Jagan Mohan Reddy.
Stating that he had witnessed the plight of small vendors and artisans during his padayatra in the run-up to the 2019 elections, Mr. Jagan Mohan Reddy said that banks were not providing loans to the vendors as they belonged to the unorganised sector. Hence, the vendors were forced to approach private parties, take loan at high interest to run their businesses, and often fall into debts, he said.
“The scheme will bring a change in the lives of small and petty vendors, as the government is relieving them from paying heavy interest. Volunteers and welfare assistants of village / ward secretariats will provide a helping hand, right from identifying the beneficiaries, taking their applications to arranging loans,” the Chief Minister said.
Through the scheme, about ₹1,000 crore is being lent to nearly 10 lakh people. The government will be paying interest of ₹60 crore to ₹100 crore annually. The government is implementing the scheme in collaboration with the banks.
Smart ID cards
The banks will credit the loan amount to the beneficiaries’ accounts in a week or 10 days. The beneficiaries will also be provided with QR-based smart ID cards. If they repay the loan in the given time, the government will reimburse the interest component once in every three months directly to the beneficiaries’ accounts, making them eligible for loan again.
“Vegetable vendors, fruit vendors, small shopkeepers, pushcart vendors, and traditional artisans are eligible to apply for the scheme. If any eligible person is not covered, they can apply through the volunteers. Upon verification, they will be provided loan in a month or two. Also, they can dial toll-free number 1902 to get themselves enrolled under the scheme,” Mr. Jagan Mohan Reddy said.
Ministers P. Ramachandra Reddy, K. Venkateswara Rao, Botcha Satyanarayana, A. Suresh, and Sankara Narayana, officials and bankers were present at the launch programme.