PM SVANidhi scheme: Street vendors can avail loan of upto Rs 10,000 to revive business
Under the scheme, vendors can avail working capital loan of up to ₹10,000, which is repayable in monthly instalments within one year.
New Delhi: The Centre has launched PM SVANIDHI – Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi – a special micro-credit facility scheme for providing affordable loan to street vendors. The scheme is aimed at enabling the street vendors to resume their livelihoods that have been adversely affected due to COVID-19 lockdown.
Under the scheme, vendors can avail working capital loan of up to ₹10,000, which is repayable in monthly instalments within one year. On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer (DBT) on six-months basis. There will be no penalty on early repayment of loan.
The lending institutions under the Scheme include Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, NBFCs, Micro Finance institutions and Self Help Group banks.
Scheme aimed at benefitting 50 lakh street vendors
The scheme targets to benefit over 50 lakh street vendors, who had been vending on or before 24th March this year, in urban areas. The duration of the scheme is till March 2022.
The street vendors belonging to the surrounding peri-urban or rural areas are being included as beneficiaries under the urban livelihoods programme for the first time.
In order to ensure fast implementation of the scheme with transparency, a digital platform with web portal and mobile app is being developed to administer the scheme with end-to-end solution. The IT platform will also help in integrating the vendors into the formal financial system.