Jagan Reddy releases Rs 370 crores under phase 2 of Jagananna Thodu scheme

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Tuesday released 370 crores under Phase 2 of the Jagananna Thodu scheme.

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Tuesday released Rs 370 crores under phase 2 of the Jagananna Thodu scheme.

He launched phase 2 of the Jagananna Thodu scheme from the Tadepalli Camp office on Tuesday.

A total of Rs 370 crores were distributed to 3.75 lakh beneficiaries under Phase 2 of this scheme, according to an official release.

The Government of Andhra Pradesh introduced Jagananna Thodu to extend interest free loans of Rs 10,000/- to the street and small vendors of the state. The main objective of the scheme is to free vendors from paying heavy interest to loans taken from private parties and falling into debts.

Speaking on the occasion, CM Reddy said, "These small vendors, most of the time, do not receive financial aid from banks because of the volatility of the market they represent. Even if they do manage to secure a loan from other sources, they pay exorbitant rates of interest. During my 3,648 km Padayatra, I saw the circumstances these vendors battle with on a daily basis. I am grateful for this opportunity to change that with this scheme."

The banks will be providing loans to all the eligible members and the government will bear the burden of the interest by reimbursing the interest amount to beneficiaries.

Phase-1 of this scheme was launched by Reddy on November 25, 2020. The scheme is split into two phases, a cumulative of Rs 905 crores has been transferred into accounts of 9.05 lakhs small businessmen and street vendors in both phases, the government said.

Under the first phase Rs 535 crores were disbursed by the banks to 5.35 lakh beneficiaries. The interest reimbursement commitment of the Government of Andhra Pradesh is Rs 29.42 crore for Phase 1 and Rs 20.35 crore for phase-2 per annum, resulting in a total of Rs 49.77 crores interest incurred and reimbursed.

( With inputs from ANI )