Andhra Pradesh Launches YSR Zero Interest Loan Scheme

The Andhra Pradesh government recently re-launched the YSR Zero Interest Loan Scheme for women SHGs in times of the COVID-19 crisis.

About the Scheme

The YSR Zero Interest Loan Scheme seeks to provide bank loans at a 0% interest rate to women self help groups in the state. 1,400 crore INR has already been credited to the bank accounts of 8.78 lakh SHGs, most of which are in the rural areas in the state. The women’s SHGs can get loans worth 20,000 to 40,000 INR per year under this scheme.

Pavala Vaddi Scheme

During the launch of the scheme, the AP CM highlighted the Pavala Vaddi Scheme. It is an interest subsidy scheme which provides support to newly set up MSMEs and SHGs in the state for a period of up to 5 years.

Role of Women’s SHGs during COVID-19 Crisis

The World Bank, recently, highlighted the contributions of the women’s SHGs in India in times of the COVID-19 crisis:

  • More than 19 million face masks have been produced by SHGs across India by early April. These groups have also produced more than 1 lakh litres of sanitizers and 50,000 litres of hand wash.
  • They have set up more than 10,000 community kitchens across India to feed the poor, stranded and the vulnerable. Eg: efforts by the Kudumbashree network in Kerala.
  • Raising awareness about COVID-19 in hard to reach areas. Eg: Jeevika platform in Bihar.
  • Provision of banking and pension services in far flung areas. These specially trained women called ‘bank sakhis’ have been deemed essential service and they are providing doorstep banking services to the needy.




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