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Source: The post is based on the article “50 lakh Street Vendors covered under PM SVANidhi Scheme” published in “PIB” on 4th October 2023
What is the News?
The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has achieved a significant milestone by extending its support to more than 50 lakh street vendors across the nation.
What is PM SVANidhi Scheme?
Launched in: 2020
Nodal Ministry: Ministry of Housing and Urban Affairs (MoHUA)
Type: Central Sector Scheme
Purpose: It is a micro credit scheme for urban street vendors that aims to provide collateral-free working capital loans up to ₹50,000.
Key Features of the scheme:
– The schemes facilitate collateral free working capital loan upto ₹10,000 of 1 year tenure, with enhanced loan of ₹20,000 and ₹50,000 in the second and third tranches respectively on repayments of earlier loans.
– Incentivizes regular repayment, through interest subsidy @ 7% per annum; and
– Reward digital transactions, by way of cashback upto ₹1,200 per year.
– The scheme employs Aadhaar-based e-KYC, utilizes an end-to-end IT platform, and employs SMS-based notifications for application status updates.
Banks eligible to give loans: Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions and SHG Banks.
