AP Govt To Extend Rs 1 Lakh Cr To SHGs

Hyderabad: The Andhra Pradesh government is beginning an initiative to create economic self sufficiency for women in the state, under which it is aiming to extend loans to the extent of Rs 1 lakh crore to one crore women through self-help groups. Chief minister YS Rajasekhara Reddy on Sept 2, addressed the officials of the department of rural development to chalk out a blueprint that would facilitate a minimum loan of Rs 1 lakh at an interest of Rs 0.25 for every eligible women in the state. Stating that the interest on a Rs 1 lakh loan works out to only Rs 3,000 per year via this scheme, as against Rs 36,000 in the case of loans taken from money lenders, the chief minister said that the Rs 0.25 interest scheme will curb the irregularities of money lenders and microfiance organisation in the rural areas of Andhra Pradesh.