Mon Jun 02 01:10:00 UTC 2025: ## Telangana’s Youth Loan Scheme Faces Criticism for Favoritism and Limited Reach

**Hyderabad, June 1 (Namaste Telangana):** The highly publicized Rajeev Yuva Vikasam (RYV) scheme, intended to provide subsidized loans for self-employment to the youth of Telangana, is facing severe criticism for its limited reach and alleged favoritism towards ruling party members.

Announced with much fanfare in February, the Congress government pledged ₹6,000 crore for the scheme, promising to grant loans to 5,000 youth in each constituency between June 2nd and 9th. However, out of the 16.23 lakh applications received, only a mere 30% (4.93 lakh) are expected to be approved, leaving a vast majority of unemployed youth disappointed.

Adding to the frustration, Chief Minister Revanth Reddy openly stated that the scheme would prioritize Congress party workers. “We will use funds dedicated to the welfare, development, health, education, and future progress of party workers,” he declared, adding that MLAs were responsible for ensuring eligible party members receive up to ₹4 lakh under the scheme.

This declaration has sparked outrage, with many claiming the RYV scheme has become a tool for political patronage rather than a genuine effort to empower unemployed youth. Further complicating matters, the selection process involves district in-charge ministers, reinforcing concerns about bias.

Delays and revisions to the scheme’s guidelines have added to the confusion. While the government initially planned to distribute loan approval documents starting June 2nd, the process has stalled. Sources suggest local Congress leaders’ interference in the beneficiary selection process is to blame.

Moreover, banks are scrutinizing applicants’ credit scores, further limiting the number of approved loans. Currently, only 55% of applications have completed bank verification. The government’s plan to offer a range of loan amounts, with varying subsidy percentages, is also under review. A large portion of the applications are for ₹4 lakh, leading officials to consider prioritizing smaller loan amounts to benefit a larger number of individuals.

The RYV scheme, once touted as a beacon of hope for Telangana’s unemployed youth, is now mired in controversy, raising questions about the government’s commitment to equitable and transparent economic empowerment.

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