Jagan launches phase 2 of interest-free loans today

370 Cr. to be paid out to 3.7 lakh small, small vendors

Chief Minister YS Jagan Mohan Reddy will launch the Jagananna Thodu program on Tuesday, which aims to provide a helping hand to small and small traders across the state.

Under this program, an interest-free loan of ¥ 10,000 would be made to small and small vendors of 3.7 lakh for an expense of ¥ 370 billion.

The program was launched on November 25, 2020 by the Chief Minister and in the first phase 535 billion yen was paid out by the banks to 5.35 lakh beneficiaries. The government paid 29.42 billion yen in interest to the Phase 1 beneficiaries.

In Phase 2, the state government decided to expand financial assistance to 3.7 lakh beneficiaries through the Sthreenidhi Credit Cooperative Federation and APCOB, which covers all eligible beneficiaries by sanctioning loans in rural and urban areas. The government is paying interest of $ 20.35 billion on the $ 370 billion loan. The government contributes a total of 49.77 billion yen under the program.

The main aim of the scheme is to free sellers from paying high interest rates on loans taken out by individuals and getting into debt.

The banks will provide loans to all eligible members and the government will pay the banks the interest on the loan amount by repaying it to the beneficiaries’ accounts. Vegetable sellers, fruit sellers, small shopkeepers, handcart sellers and traditional artisans can apply.

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