Andhra Pradesh CM Jagan Mohan Reddy will unveil the 'YSR Asara' scheme on Friday, aimed at freeing lakhs of women caught in a vicious debt trap cycle after borrowing money for various needs.
"Andhra Pradesh chief minister to launch YSR Asara to free lakhs of women from vicious debt traps," said an official.
Reddy will release Rs 6,346 crore on Friday, benefiting 8 lakh women from self-help groups (SHG).
"The CM had promised that the Government of Andhra Pradesh will reimburse all the outstanding loans taken by all the women members of SHGs belonging to the SC, ST, BC, and minority communities on April 11, 2019 in four instalments," he said.
According to the state government's calculations, the outstanding loans of women on the cutoff date were determined to be amounting to Rs 25,383 crore.
Most of these women hailing from poor families were compelled to take these loans for education, healthcare, care of elderly people at home, daily needs and other emergencies.
"This resulted in getting them into a vicious cycle of debts due to their incapability to cope with the exorbitant rates of interest," the official observed.
According to the official, multiple studies have also identified that women resort to taking loans at exorbitant interest rates to meet their needs.
Reddy also noticed their financial predicament when he undertook his 3,648 km long padyatra and promised the women that he would solve these issues on coming to power.
Highlighting schemes like Vidya Deevena, Vasathi Deevena, Amma Vodi, Vidya Kanuka and Nadu-Nedu, the official said these will offer free education for students coming from below poverty line (BPL) families, empowering women not to take expensive loans from unorganized lenders.
"Under YSR Pension Kanuka, as many as 61 lakh beneficiaries are receiving pension right at their doorstep every month. The women who are getting out of this vicious cycle will not be forced to go back to taking loans at high-interest rates once again," he pointed out.