CMO Andhra Pradesh, YS Jagan Mohan Reddy launched the second phase of Jagannath Thodu loan scheme on June 8, 2021 . The launch was marked by transferring Rs 10,000. This scheme was launched on November 25, 2021 mainly for the small street vendors of the state. Under this scheme, an interest free loan of Rs.10,000/- is provided to street vendors.The interest payment is borne by the state government. This financial assistance is mainly for the welfare of small scale street vendors.
| Plan overview |
| Scheme Name | Jagannath Thodu Loan Scheme |
| Under the scheme | Government of Andhra Pradesh |
| Launch date | November 25, 2020 |
| Launched by | Chief Minister YS Jagan Mohan Reddy |
| Beginning of Phase II | 8 June 2021 |
| Beneficiary | small sellers in the state |
| Benefit | Interest free loan of Rs.10,000/- |
| An objective | Welfare of small scale vendors across the state. |
Purpose and Benefits
- The main objective of the scheme is the welfare of small vendors across the state.
- Under this scheme Rs. 10,000/- is provided to the vendors.
- Its aim is to free the rural vendors from the vicious circle of moneylenders, rather the government will provide them loans for business directly through banks.
- The loans provided under this scheme are interest free.
- The burden of interest is borne by the government.
- The loan will be repaid in easy installments.
- No collateral security or deposit is required to avail the loan.
- It also aims to encourage self-employment opportunities in the long run.
Vendors under this scheme
Under this scheme all small vendors, fruit vendors, vegetable vendors, tea shops, bicycles, small salons, push cart vendors etc. are covered.
Hon'ble CM @ysjagan has launched #JaganannaThodu, a scheme to provide interest-free loans up to ₹10,000 to street vendors & other small traders across AP. 9,05,003 beneficiaries have been identified by village/ward volunteers & given smart ID cards for this purpose. pic.twitter.com/hhWmlvkex9
— CMO Andhra Pradesh (@AndhraPradeshCM) November 25, 2020
Scheme Details
- Jagannath Thodu Loan Scheme has been launched by the Government of Andhra Pradesh on November 25, 2020.
- This scheme is mainly launched for small sellers across the state.
- The second phase of the scheme has been launched on June 8, 2021.
- Under this scheme an interest free loan of Rs.10,000 is provided to the sellers.
- Vendors will include all small scale street businesses and vendors who are mainly involved in traditional businesses.
- The loan amount is disbursed directly to the beneficiary seller’s bank account with 7-10 days.
- It can be repaid by the seller 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.
- The objective of financial assistance through this scheme is to benefit the street vendors so that self-employment opportunities can also be encouraged.
- If a person is eligible and not covered under the scheme, one can apply through volunteers or enroll through toll free number 1902.
- Under the scheme, in the first phase, about Rs 535 crore was distributed by the banks to 5.35 lakh beneficiaries and thus the government paid Rs. 29.42 crore as interest to the beneficiaries.
- In the second phase about Rs. 370 crore is disbursed by banks to 3.7 lakh beneficiaries and thus the government has borne Rs 49.77 crore as interest for the beneficiaries.
