Existing Schemes & Programs

Department

Name of the Scheme / Programme

Description

Eligibility

How to apply

Sanctioning authority

SHG Bank Linkage

Interest Subvention

(Pavala  Vaddi/ Vaddi Leni Runalu)

With a view to incentivize prompt payment and to make the rural enterprises more remunerative, Government of A.P started the interest subvention programme (popularly known as Pavala Vaddi) under which interest on all Bank loans over and above 3% per annum was sub-vented post facto directly to SHGs. From 1st Jan 2012, this scheme is converted into ‘VaddilLeniRunalu’ under which total interest reimbursement is being made by the Government to further strengthen the viability of rural enterprises. From July 2012 onwards, SHGs are asked to pay only the principal portion, called SHG portion of the EMI, and the rest of the EMI is credited directly by the Government into loan accounts of SHGs. The SHG portion of the EMI is arrived at by dividing the loan amount by number of installments The whole process is technology driven with banks sharing transactional information of all SHG loans in the state on a monthly basis using FTP and SERP picks relevant info from this dump to generate not only the reports on performance and delinquency but also on the eligibility of SHGs for their interest subvention. The whole process is technology driven with banks sharing transactional information of all SHG loans in the state on a monthly basis using FTP and SERP picks relevant info from this dump to generate not only the reports on performance and delinquency but also on the eligibility of SHGs for their interest subvention. The interest subvention so arrived is paid directly into the loan accounts of SHGs through NEFT/RTGS and for which SERP maintains adequate amount in escrow accounts opened for this specific purpose.

 

No need to apply, through data sharing by all major banks Government of andhrapradesh