Jagananna Thodu Scheme is the initiative that was taken by the Chief Minister of Andhra Pradesh, Mr. Jagan Mohan Reddy in 2020 to provide financial aid to the people of the state who were economically impacted by the pandemic. The beneficiaries of this scheme are Street vendors, hawkers, artisans, traders, etc. These are the people who come under the unorganized sector due to which they couldn’t get credits or loans from financial institutions so they had to take the path of unofficial credit sources which is a different trap altogether. The govt. of Andhra Pradesh finally took the step for these unorganized workers of the state and through the Jagananna Thodu Scheme the govt. is providing financial aid by giving them loans or credits from official sources only so that they could face the pandemic situation.
According to the CMO Andhra Pradesh Interest-free loans up to Rs. 10,000 are provided to the street vendors, traders, and people working in such unorganized sectors across the state. Till November 2020 around 9,05,003 beneficiaries were identified across the state with the help of village or ward volunteers. The best part is that with the help of the Jagananna Thodu Scheme, these people can easily avail loans from financial institutions and the interest amount will be paid back by the state government. The Jagananna Thodu Scheme is looked at as a Kickstarter plan which helps small street vendors and similar small unorganized workers to kickstart their business again.
The Andhra Pradesh government also has a very similar scheme with the name of the YSR Zero Interest Loan Scheme under which interest-free loans are provided in the state. To take the benefit of the YST Zero Interest Loan Scheme, we would recommend going through the guide covered on our portal.
Jagananna Thodu Scheme Application
According to a report from thehindu , the govt. of Andhra Pradesh deposited Rs. 905 crores into the bank accounts of around 9.05 lakh beneficiaries as the interest-free loans under the Jagananna Thodu Scheme. The report further added that under the Jagananna Thodu scheme around Rs. 1000 crores are being lent to almost 10 lakh beneficiaries in the state and to cover the interest cost of these loans the state government is allocating around Rs. 60 crores to Rs. 100 Crores per annum. To get yourself enrolled under the Jagananna Thodu Scheme the applicants can dial 1902. As of now, there are no other processes or guidelines of application is shared by the Govt officials or the concerned department. The beneficiaries were selected through the help of surveys done by the village or ward volunteers. Those who fulfill the eligibility criteria of the scheme can become the beneficiary of the scheme with the help of the village. ward volunteers. The volunteers will do the verification and after successful verification, the beneficiaries will get the loan amount in a month or two.
There is no separate official online portal for this scheme yet so it is not possible to do an online application as of now but in case the government announce any new update or launches a specific portal for the scheme then pmmodischemes portal will be the first one to update it, so make sure you stay tuned on the portal.
Who are eligible for the Jagananna Thodu Scheme?
To get covered under the Jagananna Scheme, you must fullfil the eligibility guidelines given below.
- This scheme is only for the residents of Andhra Pradesh.
- To become a beneficiary of this scheme, the applicant must have attained the legal age of getting credit which is 18.
- The income of the applicant’s family must not exceed Rs. 10,000 per month in rural areas and Rs. 12,000 in towns.
- Applying candidate must have a bank account in his or her name.
- Vegetable/fruit and similar vendors, Small shopkeepers, traditional artisans and similar unorganized workers are eligible to be covered under the Jagananna Thodu scheme.
List of required documents
These are some of the documents which must be shown by the applicants to become beneficiarieis of the scheme.
|Address / Resident proof|
|Family Income details|
|Details about business|
This is not the full list of required documents as there are no official guidelines available on the govt. official portals or the news portals. The village/ward or the welfare volunteer will guide you about the exact documents which are required to submit for the application of the Jagananna Thodu Scheme.
Scheme Implementation Process
The state govt. conducted door-to-door surveys across the state with the help of welfare, village, and ward volunteers through which they received applications for the scheme. The volunteers are responsible for verifying the beneficiaries of the scheme on the basis of guidelines given to them by the concerned department or the state government. After verifying, the volunteers forward those applications for final verification, and further the list of final beneficiaries is sent to the associated banks. Finally, the loan amount is sanctioned to the final beneficiaries and they are also provided with smart ID cards which are QR-based for the purpose of tracking. If the repayment of the loan is done in the given period then only those beneficiaries will be further applicable for acquiring the loan again in the future.
Benefits & Objectives of the Jagananna Thodu Scheme
The Chief Minister of Andhra Pradesh stated that the idea behind this scheme came through the padayatra which he did in 2019 for the elections when he heard the plights of small street vendors and artisans. They were not able to acquire small loans as capital to start their small income sources because the financial institutions couldn’t provide credits to such people belonging to the unorganized sector. Due to this nonavailability of loans from banks, these people had to go for credits from private or unofficial sources and eventually falling into debt because of the high-interest rates. To solve this problem the state government came up with the Jagananna Thodu scheme and the govt. made sure to keep the process hassle-free for the beneficiaries from application to directly receiving the sanctioned loan in their bank accounts, the process is pretty smooth. The state govt. also provided the additional benefit of zero interest so that those small vendors or similar workers don’t get under the burden of interest rates.