Telangana smart savings: Rs 1 lakh grant if youths save Rs 10 for 6 months

Hyderabad: Save Rs 10 per day for six months and get Rs 1 lakh grant from the state government. This is the new scheme conceptualised by TS government to encourage savings among unemployed youths in the age-group of 18 to 35 years. The amount has to be utilised for self employment by forming youth groups. An exclusive youth bank will be set up to disburse financial assistance to youths.

The youth bank is planned along the lines of highly successful “Stree Nidhi Bank”, a women's cooperative bank  to advance loans to women self help groups (SHGs) and aimed to help unemployed youths who are facing difficulties in getting loans from commercial banks.

Stree Nidhi was set up in 2011 by previous Congress government with Rs 1,000 crore as capital  following the microfinance crisis in undivided AP  and uproar over high interest rates charged by private microfinance companies.

Loan disbursal by Stree Nidhi Bank in TS has increased 68 per cent to Rs 703 crore in 2014-15 compared to Rs 417 crore in 2013-14. Enthused with this successful model, the TS government initiated efforts to set up an exclusive youth bank to encourage youth for self-employment by forming groups.

Under this, youths in the age group of 18 to 35 years have to form a group comprising 10 to 15 members. Each member has to save Rs 10 per day for six months. If 10 members save Rs 10 per day, it adds up to Rs 18,000 in six months and for 15 members, Rs 2,70,000.

In return, they will get a grant of Rs 1 lakh from the state government after six months. Minister for youth affairs T. Padma Rao Goud said the government has asked officials to ensure formation of at least 1,000 groups in each district in the next two-three months.

“Once 1,000 groups are formed in each district, the state government will set up the youth bank and this will cover 10,000 groups in the first phase. The number of groups will be increased every year to cover more number of youths,” Mr Goud said.