AP disburses Rs 370 cr loans to 3.7L vendors

Amaravati: THE Andhra Pradesh government has distributed Rs 370 crore as interest-free loans among 3.75 lakh small business owners and street vendors across the State. Chief Minister YS Jagan Mohan Reddy launched the second phase of the Jagananna Thodu scheme from the Tadepalli Camp office on Tuesday.

The Andhra Pradesh government had introduced the Jagananna Thodu scheme to provide interest-free loans of Rs 10,000 each to street and small vendors in the State.

These vendors who typically require daily working capital in the range of Rs 2,000 to Rs 5,000 are known to take loans from moneylenders at exorbitant rates ranging from 3 to 10 per cent per day.

Speaking on the occasion, the CM said, "These small vendors most of the time don't 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'm grateful for this opportunity to change that with this scheme." To improve the incomes of such small businessmen and street vendors, including traditional artisans, the state government decided to provide interest free loans worth Rs 10,000 under the Jagananna Thodu scheme.