Amaravati, Sep 11 (IANS): Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy on Friday launched the 'YSR Asara' scheme, which will benefit 87 lakh women belonging to 8.71 lakh self-help groups (SHGs).

"Today, your Jagan stands before you as someone who is fulfilling the promise he made. I promised that I will reimburse all outstanding loans of SHGs as on April 11, 2019 in four installments and today, I am releasing the first," said Reddy.

He asked if any other state government ever introduced such a big scheme, benefiting so many women.

The Chief Minister had promised that the government of Andhra Pradesh will reimburse all the outstanding loans taken by all the women members of the SHGs belonging to the SC, ST, BC, and minority communities on April 11, 2019.

The scheme promises to deposit money in the bank accounts of eligible women, amounting to Rs 27,168 crore in total, in four installments.

On Friday, Reddy released the first installment of Rs 6,792 crore at the press of a button in his office, in the presence of ministers and officials.

District collectors, senior officials and several beneficiaries also witnessed the launch, live through a video conference.

According to the state government's calculations, the outstanding loans of eligible women on the cut-off date were determined to be amounting to Rs 25,383 crore.

Most of these women hailing from poor families were compelled to take these loans for education, healthcare, care of elderly people at home, daily needs and other emergencies.

This resulted in getting them into a vicious cycle of debts due to their incapability to cope with the exorbitant rates of interest.