New Male Loan Groups Launched in Andhra Pradesh

In a novel initiative aimed at supporting economically disadvantaged men struggling to secure bank loans, the Andhra Pradesh government has decided to establish men’s groups similar to DWCRA (Development of Women and Children in Rural Areas) societies. This effort will encourage members to save collectively and access bank loans with government support.

Initially, the government aims to set up 28 groups in Anakapalli, of which 20 have already been formed. This program mirrors the DWCRA model implemented during the Telugu Desam Party regime, where women’s groups of 10 members each saved money collectively and accessed bank loans. Successful repayment led to increased loan limits.

Under the new initiative, five-member Common Interest Groups (CIGs) will be established. Eligible participants include men aged 18 to 60 years, such as watchmen, private-sector employees, rickshaw drivers, Zomato and Swiggy delivery agents, and construction workers.

To form a CIG, applicants must submit Aadhaar and white ration cards at the UCD office of the GVMC Zonal Office in Anakapalli. The government plans to provide loans ranging from ₹75,000 to ₹1 lakh to each group in the first phase.

Y. Santosh Kumar, UCD PD, confirmed the establishment of 20 CIGs so far. He stated that there is no upper limit on the number of groups that can be formed, provided five eligible members come together. He added that organized groups could access loans at lower interest rates, with potential for loan enhancement upon timely repayment, similar to the DWCRA model.