PM SVANidhi Scheme to facilitate collateral free working capital loan to street vendors to restart their businesses
- Press Information Bureau
- March 22, 2022
Since June 1, 2020, the Ministry of Housing and Urban Affairs (MoHUA) has been implementing the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi Scheme) to provide street vendors with collateral-free working capital loans to help them restart their businesses after being negatively impacted by the Covid-19 pandemic. The Scheme's aims are as follows:
- Facilitate a collateral-free working capital loan of up to Rs. 10,000 (US$ 131.13) with a one-year term; enhanced loans of 20,000 (US$ 262.27) and 50,000 (US$ 655.67) in the second and third tranches, respectively, on repayment of previous loans.
- Provide an interest subsidy of 7% each year to encourage regular repayment; and
- Reward digital transactions with up to Rs 1200 (US$ 15.74) in cash back each year.
The Lending Institutions had released loans totaling Rs. 3,119 crore (US$ 408.92 million) to the beneficiaries as at 15.03.2022. Annexure-I contains state-by-state and bank-by-bank information. As of March 15, 2022, 44.8 lakh qualifying loan applications had been submitted, with 33.4 lakh loan applications sanctioned and 30.1 lakh loans disbursed. This includes both first and second tranche loans. Annexure-II contains state-by-state information.
As of March 15, 2022, the scheme had benefited 28.8 lakh street sellers. Annexure-III contains state/UT-specific information.1.90 lakh street sellers in Gujarat have taken advantage of the first tranche loan. A total of 13,982 street vendors have received a second tranche loan. Annexure-IV lists the number of recipients by ULB.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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