AP Government Announces Key Changes to Self-Employment Loan Schemes

The Andhra Pradesh government has announced significant updates to its self-employment subsidy loan schemes, aiming to alleviate poverty among backward classes (BCs) and economically weaker sections (EWS). To simplify the loan disbursement process, the state has allocated ₹896 crore for BCs and ₹384 crore for EWS for the 2024–25 financial year, releasing updated implementation guidelines.

Eligible beneficiaries are required to submit applications within a week. This year, the scheme targets providing benefits to 1.30 lakh BCs and 59,000 EWS individuals. Previously, beneficiaries had to contribute a portion of the project cost as their share, which was then subsidized by the government, while the remaining amount was provided as a bank loan. However, under the new guidelines, beneficiaries no longer need to bear any contribution. The government subsidy will now cover part of the unit establishment cost, with the remaining amount provided as a bank loan.

To ensure effective implementation, district-level inspection teams will monitor unit grounding. Beneficiaries will no longer need to navigate banks for documentation, as the entire process will be facilitated at the MPDO or municipal commissioner offices. The government has also introduced the Online Beneficiary Monitoring and Management System (OBMMS) web portal, enabling applicants to submit their forms through village or ward secretariats, or independently online.

Subsidy amounts will be credited directly to the respective banks, and approved units will be distributed through constituency-level events. Additionally, a designated staff member at village or ward secretariats will oversee loan repayment monitoring.

Eligibility criteria for the scheme include individuals below the poverty line, aged between 21 and 60 years. Beneficiaries can apply for units such as mini dairies, sheep and goat rearing, financial assistance for Medara, Kammara, and Salivahana communities, support for carpentry work, and loans for setting up generic medicine stores.