Andhra CM to free SHGs from debt under new scheme

Chief Minister YS Jagan Mohan Reddy will launch 'YSR Asara' scheme for Self-Help Groups (SHGs) on September 11.

Under the scheme, outstanding loans of SHGs will be reimbursed and a sum of Rs 6345.87 crore will be released for the benefit of 7,91,257 SHGs.

The promise was made after Reddy observed that many women of state have incurred massive loans to cope with the expenses towards education, health care, elderly care, daily needs, and other emergencies and this resulted in them getting into a vicious cycle of debts due to their incapability to cope with the exorbitant rates of interest.

Reddy had promised that the Andhra Pradesh government will reimburse all the outstanding loans taken by all the women members of self-help groups belonging to the SC, ST, BC, and minority communities as on April 11, 2019, in four instalments.

Consequentially, when the sum of the outstanding loans as on the cut off date was calculated, the result was over Rs. 25,383.49 cr.

The women will not be forced to go back to taking loans at high-interest rates once again. This amount can also be used for their future prospects if they have repaid their loan already, as the government will still stick to its promise of reimbursing the total outstanding loan.

( With inputs from ANI )