CM credits 370 crore to accounts of 3.7 lakh vendors under the Jagananna Thodu program
Chief Minister YS Jagan Mohan Reddy said vendors small and small are handcrafted by the government so they don’t fall prey to moneylenders who charge them exorbitant interest on hand loans.
As part of the second phase of the Jagananna Thodu program, the state government has credited 3.7 billion yen to small traders for interest-free loans.
Mr Jagan said that small and small sellers, artisans, private parties do not need to ask for loans as they can borrow from banks under the Jagananna Thodu program to fund their working capital.
Although 9.05 lakh beneficiaries were identified for the program, only 535 billion yen were paid out by the banks to 5.35 lakh beneficiaries in phase 1, even though the government had offered to pay the interest. Since these providers are part of the disorganized sector, the banks do not lend and end up turning to private parties, borrowing at high interest rates to conduct their business, and often going into debt.
To resolve this, the state government has decided to provide financial assistance to the remaining 3.7 lakh beneficiaries through the Association of Sthreenidhi Credit Cooperative and APCOB, which will cover all eligible beneficiaries through sanctioning loans in rural and urban areas, said the Prime Minister and added that ₹. 49.77 crore was paid by the government under the interest payment scheme.
“The Jagananna Thodu program will change the lives of small and small vendors as the government exempts them from paying high interest and if they repay the loan amount within the deadline, the state government will refund the interest directly to the beneficiaries’ accounts and they are also entitled to take out the next loan, ”said Mr. Jagan.
The prime minister said vegetable vendors, fruit vendors, small shopkeepers, hand cart vendors and traditional artisans will be eligible to apply for the program in a month or two to be provided with the benefits of the system. You can also call toll-free 1902 to sign up.