Amid the Corona crisis, Ministry of Housing and Urban Affairs had launched Prime Minister Street Vendor’s Amta Nirbhar Nidhi Scheme (PM SVANidhi) on June 01, 2020 which aims to facilitate collateral free working capital loans upto Rs 10,000 of 1 year tenure, to about 50 lakh street vendors across the country.
According to recent reports, the approved outlay for PM SVANidhi scheme is Rs.600.00 crores. A statement giving State/Union Territories wise details of loan amount disbursed by the Lending Institutions up to September 17, 2020 is annexed. This was informed by Minister of State (I/C) for Housing and Urban Affairs Shri Hardeep Singh Puri in a written reply in the Rajya Sabha today.
Facilitating Collateral Free Working Capital Loans Upto Rs 10,000
It also provides for incentives in the form of interest subsidy @ 7% per annum on regular repayment of loan and cash-back upto Rs. 100 per month on undertaking prescribed digital transactions. Further, on timely or early repayment, the vendors will be eligible for the next cycle of working capital loan with an enhanced limit. For the purpose of scheme administration, an end-to-end solution through an IT platform has been developed in collaboration with Small Industries Development Bank of India (SIDBI). The loan processing under the Scheme has commenced on July 02, 2020.
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