what is paavala vaddi
Answers
Answer:
Explanation:
The Pavala Vaddi scheme was introduced by Andhra Pradesh government (Finance Ministry) for interest subsidy on the bank loans received by the self-help groups in Andhra Pradesh. The scheme intends to reduce the financial burden for setting up of New Micro and Small enterprises in the state including Food Processing Industries. This Scheme applies to all loans extended by banks under SHG Bank Linkage Programme. In this article, we look at the Pavala Vaddi MSME Scheme in detail.
Benefits of Pavala Vaddi Scheme
*The person applying for Pavala Vaddi Scheme can avail the benefits which are listed below:
The Pavala Vaddi scheme grants benefits in the form of interest subsidy on the Bank loan received by the self-help groups or micro and small enterprises.
*Under Pavala Vaddi scheme the interest amount paid by the eligible micro and small enterprises to the financial institution or banks on the term loan availed will be reimbursed with a maximum limit of 9% on a half-yearly basis to the concerned financial institutions or bank.
*The Pavala Vaddi scheme distributes the incentive will be in the kind of reimbursement of interest is above 3% of irrespective of bank interest rates and which does not include penal interest, liquidated damages etc., paid to the bank.
*Under this scheme, benefits will be available to the eligible beneficiaries for a term of five years.