VIJAYAWADA: The stage is set for the disbursal of the interest on loans taken under the Interest-Free Loans for SHGs scheme to the beneficiaries on Friday in Ongole by Chief Minister YS Jagan Mohan Reddy. The Chief Minister will credit Rs 1,261 crore to the bank accounts of 1,02,16,410 members of women SHGs in the state, who repaid their bank loans on time. The total amount reimbursed to beneficiaries, including the interest amount reimbursed to the SHG members, in the last three years is Rs 3,615 crore.
The scheme is applicable to those SHGs women, who took loans up to Rs 3 lakh and repaid the same on time. The interest on the loan is borne by the government. The main objective of the government is to encourage women entrepreneurship by providing financial assistance through YSR Cheyutha, YSR Aasra, Zero Interest Loans to SHGs, thereby ensuring women empowerment. The state government has signed agreements with multinational companies like ITC, HUL, P&G, Reliance, Amul as part of the scheme.
Through government efforts, women in the state are able to get additional income of Rs 7,000 to Rs 10,000 per month. The MoU with Amul ensured competition in the market and women dairy farmers are able to earn an additional Rs 5 to Rs 15 income on one litre of milk compared to earlier.
The government negotiated with banks to bring down the interest rate from 13.5 per cent to 9.5 and then to 8.5 per cent. Beneficiaries have taken loans amounting to Rs 25,000 crore with a recovery rate of 99.27 per cent. The State government till date through DBT and non-DBT schemes provided Rs 1,77,391.49 crore, of which women’s share was Rs 1,20,083.80 crore, that is 70 per cent.
Repayment under interest-free loan
Interest on SHG loans (2016-17): Rs 980 crore; Govt paid: Rs 382 crore
Interest on SHG loans (2017-18): Rs 1,134 cr; Govt did not pay any amount
Interest on SHG loans (2018-19): Rs 1,327 crore; Govt did not pay
Interest on SHG loans (2019-20): Rs 1,258 crore; Government paid the entire amount
Interest on SHG loans (2020-21): Rs 1,096 crore; Government paid the entire amount
Interest on SHG loans (2021-22): Rs 1,261 crore, The government paid the entire amount