Jagananna Thodu Loan Scheme, Andhra Pradesh

CMO Andhra Pradesh, YS Jagan Mohan Reddy, launched the second phase of Jagananna Thodu loan scheme on June 8, 2021. This launch was marked  by transferring Rs. 370 crores in the units of Rs. 10,000 to about 3.7 lakh small vendors. This scheme was launched on November 25, 2021 mainly for the small street vendors in the state. Under this scheme, interest free loan of Rs. 10,000/- is provided the street vendors. Interest payment is borne by the state government. This financial assistance is mainly for the welfare of the small-scale street vendors.

Scheme Overview:

List of scheme launched by Andhra Pradesh Government

Objectives and Benefits:

• The main objective of the scheme is welfare of the small vendors across the state
• Under this scheme, loan of Rs. 10,000/- is provided to the vendors
• It aims to free the rural vendors the vicious circle of money lenders rather government will directly provide them a loan for business through banks.
• Loans provided under this scheme are interest free
• Burden of interest is borne by the government
• Repayment of loans will be in easy installments
• No collateral security or deposit is required for getting the loan
• This also aims to encourage self-employment opportunities in the long run

Vendors under this scheme:

• All the small vendors come under this scheme, fruit vendors, vegetable vendors, tea stalls, items sold on bicycles, small saloons, push cart vendors, etc

Scheme Details:

• Jagananna Thodu loan scheme is launched by the Andhra Pradesh government on November 25, 2020
• This scheme is mainly launched for the small vendors across the state
• Phase 2 of the scheme is launched on June 8, 2021
• Under this scheme an interest free loan of Rs. 10,000 is provided to the vendors
• Vendors will include all the small-scale street businesses and vendors mainly those included in traditional occupations
• Loan amount is provided directly into the bank account of the beneficiary vendor with 7-10 days
• It can be repaid by the vendor in easy installments
• The interest burden will be borne by the state government itself
• If the beneficiary repays the loan on time the government will reimburse the interest amount and the beneficiary will be eligible for the loan again
• Financial assistance through this scheme aims at welfare of the street vendors thereby encouraging self-employment opportunities too.
• In case a person is eligible and not covered under the scheme, the person can apply through volunteers or enroll through toll free no. 1902
• Under the scheme in the first phase, about 535 crores were distributed by the banks to 5.35 lakh beneficiaries and thereby government paid Rs. 29.42 crore as interest for the beneficiaries
• In the second phase, about Rs. 370 crores are distributed by the banks to 3.7 lakh beneficiaries and thereby government has borne 49.77 crores as interest for the beneficiaries