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Posted on Dec 15, 03:24PM | UNI
Andhra Pradesh Chief Minister N Kiran Kumar Reddy today said he has requested the Government of India to extend the same interest sub-vention scheme for the SHG women on par with the farmers.
He said the Government of India has already reduced the interest burden of farmers to almost 4 per cent per annum.
"The farmers now get the crop loans at 8.5 per cent interest and of this 1.5 per cent will be paid by the Centre and the farmers who make prompt repayment will get another 3 per cent interest subsidy, thus in fact, the farmer gets the loans at 4 per cent and in Andhra Pradesh all eligible farmers are given loans at zero per cent interest since the State Government have taken over the burden of the remaining 4 per cent interest under the 'vaddileni runaalu' (interest-free loans) scheme," according to an official release here.
While speaking at the National Conference on Community Based Approaches for Inclusive Growth at the National Institute for Micro, Small and Medium Enterprises (NI-MSME) here, the Chief Minister said following his request, the Government of India has also agreed for the same interest sub-vention scheme for the rescheduled loans as well.
The Chief Minister said he wanted the same interest sub-vention scheme for SHG women.
The Chief Minister said the pavala vaddi scheme actually started in his constituency a decade ago.
He said the State Government is spending Rs 1500 crores towards the interest subvention scheme to help the SHG women.
He said Sree Shakthi Bhavans are already being completed in 1600 mandals and the women SHGs hereafter will function from their own office from this building.
"The repayment by women SHGs in Andhra Pradesh is to the tune of 96 to 97 per cent," he added.