The Government of Andhra Pradesh, under the visionary leadership of Chief Minister Y.S. Jagan Mohan Reddy, has launched the YSR Zero Interest Loan Scheme 2025 to empower women across the state. This welfare scheme is specifically designed to provide interest-free loans to women belonging to Self-Help Groups (SHGs) and DWCRA (Development of Women and Children in Rural Areas) associations, enabling them to pursue financial independence and livelihood opportunities without the burden of loan interest.
In this article, you’ll find a complete overview of the YSR Zero Interest Loan Scheme, including its objectives, key benefits, eligibility criteria, required documents, and a step-by-step guide to apply online.
About YSR Zero Interest Loan Scheme
The Government of Andhra Pradesh has officially launched the YSR Zero Interest Loan Scheme 2025 to empower women and promote financial inclusion across the state. Under this initiative, women are forming Self Help Groups (SHGs) in large numbers to uplift society and become financially independent. As part of the scheme, the government has announced a massive ₹1400 crore direct deposit into the bank accounts of over 8.78 lakh SHGs, including members from DWCRA (Development of Women and Children of Rural Areas) groups.
This move aims to provide interest-free loans to eligible women groups, enhancing their ability to start small businesses, meet household needs, or tackle emergencies like the COVID-19 pandemic.
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Key Highlights of YSR Zero Interest Loan Scheme
| Launched By | Andhra Pradesh Government |
| Name of Scheme | YSR Zero Interest Loan Scheme 2024 |
| Objective | To provide financial Help |
| Benefits | Provide the receivers credit with no interest |
| Eligibility Criteria | Must be a resident of Andhra Pradesh |
| Beneficiaries | DWCRA Women Associations and self-help organisations |
| Official Website | Announced Soon |
The objective of YSR Zero Interest Loan Scheme
The YSR Zero Interest Loan Scheme 2025 is a flagship initiative launched by the Andhra Pradesh Government with the aim of making women financially independent, self-reliant, and economically secure. The scheme primarily benefits women who are part of Self Help Groups (SHGs) and DWCRA (Development of Women and Children in Rural Areas) associations. Through this scheme, eligible women can avail interest-free loans to start their own businesses and become self-employed. It is designed to help women explore various employment opportunities and gain financial stability without relying on others. With documented, interest-free loans, women can now confidently launch small enterprises and take control of their financial future.
This scheme not only offers financial support but also promotes women entrepreneurship and economic development at the grassroots level.
Benefits of the YSR Zero Interest Loan Scheme
Under the YSR Zero Interest Loan Scheme 2025, eligible beneficiaries will receive interest-free credit from the Andhra Pradesh government. These funds can be used by Self Help Groups (SHGs) and DWCRA associations to expand their community-based services and business activities. The scheme aims to empower women from rural and economically weaker sections by offering financial assistance without any interest burden. Members of women-led self-development groups are encouraged to apply and grow through this initiative.
In addition to supporting women, the Chief Minister of Andhra Pradesh has also announced that the government will bear the full tuition fees for eligible students. As a result, around 11.50 lakh students across the state are expected to benefit from this decision. This dual benefit strategy—supporting both women entrepreneurs and students—marks a significant step towards inclusive development and social empowerment in the state.
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Implementation of the YSR Zero Loan Interest
As per official state reports, the YSR Zero Interest Loan Scheme is set to benefit nearly 90 lakh women across Andhra Pradesh, particularly those associated with various DWCRA (Development of Women and Children in Rural Areas) affiliations. The scheme is designed to provide interest-free financial assistance to women-led Self Help Groups (SHGs) and DWCRA collectives to boost entrepreneurial efforts and socio-economic development. Under this initiative, the approved loan amounts will be directly transferred to the respective bank accounts of eligible groups through the Direct Benefit Transfer (DBT) system, ensuring transparency and quick disbursement.
Recently, the Andhra Pradesh government disbursed an impressive amount of ₹1400 crore under this scheme to support women’s financial independence and promote grassroots development. This strategic move by the state not only uplifts rural women but also reinforces Andhra Pradesh’s commitment to inclusive growth and women empowerment.
Third Instalment Of YSR Zero Interest Scheme
During his official visit to Ongole Town, Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy is set to release the third installment of the YSR Zero Interest Loan Scheme on April 22, 2022. The financial aid will be directly credited to the bank accounts of eligible Self-Help Group (SHG) women through the Direct Benefit Transfer (DBT) system. The Chief Minister will also address the public in a special gathering organized at ABM College Campus in Ongole, where he will elaborate on the government’s commitment to women empowerment and financial inclusion.
To benefit from this interest-free loan scheme, applicants must be affiliated with a DWCRA group or a recognized Self-Help Group (SHG). The initiative aims to provide financial assistance to women across Andhra Pradesh, helping them build sustainable livelihoods and contribute to the state’s socio-economic development. This ongoing support reinforces the government’s mission to empower rural women, encourage entrepreneurship, and ensure inclusive growth across communities.
Be prepare for the YSR Zero Interest Loan
The state budget for the fiscal year 2021 was presented by Finance Minister B. Rajendranath Reddy on Tuesday at the state Assembly in Velagapudi. Even after the financial strain brought on by the COVID-19 issue, the AP Government continues to allocate cash for all schemes. The finance minister stated that while combating COVID is a top priority, welfare programmes are equally crucial. To assist the women who are affiliated with self-help groups, the government has earmarked Rs 1,365.08 crore in the state budget for the YSR Zero Interest Loan Scheme.
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59661 Women Received Benefits from the Program
The Andhra Pradesh government continues its commitment to welfare by regularly depositing financial assistance into the bank accounts of eligible beneficiaries. Typically, these transfers are made twice a year, in June and December. On December 28, the government disbursed a total of ₹703 crore to 9.30 lakh beneficiaries through various social welfare schemes. As part of the YSR Zero Interest Loan Scheme, ₹53.51 crore was deposited into the accounts of 59,661 women associated with Self-Help Groups (SHGs) and DWCRA organizations.
Despite financial constraints, Chief Minister Y.S. Jagan Mohan Reddy reaffirmed the government’s dedication to supporting marginalized sections through consistent Direct Benefit Transfers (DBT) and flagship initiatives like the YSR Zero Interest Loan Scheme, aimed at making women self-reliant and economically empowered.
Amount Transferred Already
The Chief Minister of Andhra Pradesh officially launched the YSR Zero Interest Loan Scheme by disbursing a massive amount of ₹1,400 crore through a digital platform. This amount was transferred via Direct Benefit Transfer (DBT) to 8,78,874 bank accounts of women belonging to DWCRA groups under SERP and MEPMA. In total, the scheme aims to benefit over 90.37 lakh women associated with Self Help Groups (SHGs) and DWCRA across the state. This digital rollout reflects a significant step toward empowering women through interest-free loans, promoting financial independence, and supporting micro-enterprises across rural and urban Andhra Pradesh.
Eligibility Criteria
To be eligible for the 0% loan programme, an applicant must meet the following requirements:-
- The candidate must reside in the state of Andhra Pradesh.
- A candidate must be a member of a self-help organisation or DWCRA group for women.
- Only Andhra Pradesh women are eligible for the programme.
- The candidate must have a valid bank account number.
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Documents Required
All qualified applicants for the Zero Interest Loan Scheme must review the list of papers needed to apply.
- Photo ID proof
- SGH or DWCRA certificate
- Passport size photograph
- Bank Details
- Aadhar card
How to Apply Online for the Zero Interest Program
- First, visit the YSR Zero Interest Loan website.
- Before you, the home page will load.
- You need to select the Apply Now an option on the homepage.
- You’ll see the application form there.
- You must fill out this application form with all necessary information, including your name, phone number, email address, etc.
- You must now upload all necessary documents.
- After that, you must select “submit.”
- This process will allow you to apply for the YSR zero-interest loan programme.
Contact Details
To apply for the YSR Zero Interest Loan Scheme, applicants must visit the official website, where they can access complete information about the scheme, eligibility criteria, benefits, and the step-by-step application process.