Jagananna Thodu: Small traders get helping hand

Amaravati: Chief Minister YS Jagan Mohan Reddy on Wednesday deposited Rs 905 crore to 9.05 lakh small traders towards interest-free loans heralding the launch of Jagananna Thodu scheme.

Speaking on the occasion, the Chief Minister said that from now on petty vendors and artisans need not approach private parties for loans and burden their lives by paying heavy interest, as they can now take loans from banks under Jagananna Thodu scheme to cater to their working capital.

The Chief Minister said that he had witnessed the plight of small vendors and artisans during his 3,648 km padayatra, where the vendors cater to the needs of the public irrespective of the adverse weather conditions by selling vegetables, flowers and groceries in the streets to make a living.

"Their absence not only puts our livelihood in jeopardy but also our economy," he said.

"As the vendors come under unorganized sector, banks do not provide loans to small-time vendors. They end up approaching private parties and take loans at high-interest rates to run their businesses. They often fall into debts," he said.

Chief Minister YS Jagan Mohan Reddy said that the scheme will bring a change into the lives of petty vendors as the government is relieving them from paying heavy interests. The vendors will be accompanied by volunteers and welfare assistants of village/ ward secretariats to provide a helping hand right from identifying beneficiaries, taking their applications to arranging loans.

"Through this scheme, about Rs 1,000 crore is being lent to nearly 10 lakh people, where the government will be paying interest of Rs 60 crore to Rs 100 crore annually and if it is taken for 10 years, it will be Rs 1,000 crore. The government is implementing the scheme in collaboration with bankers to better the lives of small traders and vendors. The banks shall credit the loan amount of Rs 10,000 to the beneficiaries' accounts within a week or 10 days. The beneficiaries will also be provided with QR-based smart ID cards and if they repay the loan amount in the given timeline, the State government shall reimburse the interest once in every three months directly to the beneficiaries' accounts, and further, they will be eligible to take the next loan," he said.

The Chief Minister stated that vegetable vendors, fruit vendors, small shopkeepers, pushcart vendors, and traditional artisans are eligible to apply for the scheme and if any eligible person was not covered in this scheme, they can still apply through volunteers, and upon verification, they will be provided with the scheme benefits in a month or two. Also, they can call on the 1902 toll-free number to get enrolled. Ministers Peddireddy Ramachandra Reddy, Kodali Venkateswara Rao, Botsa Satyanarayana, Adimulapu Suresh, Sankara Narayana, other officials and bankers were present at the launch event.