FINANCE SCHEMES

Pavalavaddi 


The Government of Andhra Pradesh introduced Pavalavaddi Scheme (Interest Subsidy) during the year 2004-05 with an objective to provide interest subsidy on the Bank loans taken by the Self Help Groups in Andhra Pradesh to reduce the financial burden on them. The Scheme is applicable to all loans extended by banks on or after 01.07.2004, under SHG Bank Linkage Programme.

Need of the Scheme :

1 Self Help movement of women with thrift as entry point has grown as a mass movement in Andhra Pradesh. There are about 6.99 lakh women Self Help Groups covering nearly 89 lakh rural poor women in AP. The SHG women have taken up various income generating activities by availing themselves of the facility under the SHG - Bank Linkage programme and created a path for their economic empowerment. The Nationalized banks, Regional Rural Banks & Co-operative Banks are coming forward to issue loan to Self Help Gropus.

2. The Banks are giving loans under SHG Bank Linkage programme with different rates of interest ranging from 8% to 12%. The groups are facing difficulty in paying such rates of interest.

3. To reduce the financial burden on the Self Help Groups, the Government of Andhra Pradesh introduced the "Pavala Vaddi" scheme (Interest Subsidy) during the year 2004-05 with an objective to provide interest subsidy on the loans taken by Self Help Groups under this scheme.

Process :

1. The DRDA will obtain the details of SHG repayment for the purpose of interest subsidy twice a year through the Mandal Samakhyas.

2. DRDA will calculate the Pavala Vaddi to be given to each SHG basing on the bank statement. The DRDA will give the Pavala Vaddi Cheques to the Mandal Samakhya along with the statement of particulars accruing to each SHG.

3. The Mandal Samakhya in turn will distribute the cheques to the SHGs through the Village Organisations inthe Presence of non officials.
For further reference: http://rd.ap.gov.in/

Swarnajayanti Gram Swarozgar Yojana

Poverty eradication through self help Groups Swarnajayanthi Gram Sswarozgar Yojana Scheme is a holistic approach towards poverty eradication in rural India through creation of self-employment opportunities to the rural Swarozgaries. This scheme is implemented in the country through District Rural Development Agencies. The Centre and State fund this program in the ratio of 75:25. It is designed to help poor rural families cross the poverty line. This is achieved through providing income generating assets and inputs to the target groups through a package of assistance consisting of subsidy and bank loan.

Objectives SGSY came into existence in 1999-2000 duly merging the schemes of Integrated Rural Development Program (IRDP), Training for Rural Youth under Self Employment (TRYSEM) Development of Women & Children in Rural Areas (DWCRA) and Supply of Improved Toolkits to Rural Artisans (SITRA).

The scheme aims to bring every assisted poor family above the poverty line by ensuring appreciably sustainable level of income over a period of time. This objective is to be achieved by organizing the rural poor in to Self Help Groups (SHG) through the process of social mobilization, their training and capacity building,and provision of income generating assets.

1. Training
2. Infrastructure
3. Revolving fund to SHGs
4. Subsidy for Economic Activity 

However,based on the local requirement, the expenditure on different components of Training and Capacity Building, Revolving fund and subsidy for Economic activity may have to be prioritized.

For further reference: http://sgsy.gov.in/