PM-SVANidhi: Centre receives over 5 lakh loan applications from street vendors
Under the scheme, the government aims at providing loans of up to Rs. 10,000 to the street vendors to restart their business post-COVID-19 pandemic.
The number of applications received by the central government under PM-SVANidhi (PM Street Vendor’s Atmanirbhar Nidhi) Scheme has crossed over 5 lakh mark within the 41 days of the start of the lending process.
As per an official statement, the number of loans sanctioned under a scheme has crossed one lakh. Under the scheme, the government aims at providing loans of up to Rs. 10,000 to the street vendors to restart their business post-COVID-19 pandemic.
The scheme has been launched by the Ministry of Housing and Urban Affairs under ‘Atmanirbhar Bharat Abhiyan’. It aims at facilitating loans up to Rs. 10,000 for one- year tenure, to about 50 lakh street vendors in urban areas, including peri-urban/rural areas.
• Under the government launched scheme, street vendors will be able to avail a working capital loan of up to Rs. 10,000, which will be repayable in monthly installments in a year.
• Onboarding vendors on the digital payment platform has been an important component for building their credit profile and in helping them become part of the formal urban economy.
• Incentives in the form of interest subsidy at 7% per annum at regular repayment of the loan, eligibility for the enhanced next tranche of the loan, and cashback up to Rs. 1,200 per annum on undertaking prescribed digital transactions have also been provided.
• The scheme aims at bringing banks at the doorstep of the nano-entrepreneurs by engaging the Micro Finance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs) as the lending institutions.
• These are in addition to Scheduled Commercial Banks- Private and Public, Cooperative Banks, Regional Rural Banks, and SHG Banks.
About PM-SVANidhi Scheme:
It is a central government launched scheme under the ambit of the Atma Nirbhar Package. The scheme aims at bringing relief to the street vendors and has already seen a response of over 1.5 lakh vendors.
PM SVANidhi Scheme was launched on June 1, 2020, by the Ministry of Housing and Urban Affairs for providing affordable working capital loans to the street vendors so that they can resume their livelihoods that have been deeply impacted due to the ongoing COVID-19 lockdown.