The center receives more than 5 lakh of loan applications from street vendors

The number of applications received by the central government under the PM-SVANidhi (PM Street Vendor’s Atmanirbhar Nidhi) scheme exceeded the 5 lakh mark within 41 days after the start of the loan process.

According to an official statement, the number of loans sanctioned under a scheme has crossed one lakh. Under the scheme, the government aims to make loans of up to Rs. 10,000 to street vendors to restart their businesses after the COVID-19 pandemic.

The plan was launched by the Ministry of Housing and Urban Affairs under the title ‘Atmanirbhar Bharat Abhiyan’. It aims to facilitate loans of up to Rs. 10,000 for one year of tenure, to around 50 lakh from street vendors in urban areas, including peri-urban / rural areas.

Key points:

Under the scheme launched by the government, 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 one year.

Incorporating providers into the digital payment platform has been an important component in building their credit profile and helping them become part of the formal urban economy.

Incentives in the form of an interest subsidy at 7% per annum on the regular payment of the loan, eligibility for the next improved tranche of the loan, and cash back up to Rs. 1,200 per year have also been provided to perform prescribed digital transactions.

The plan aims to bring banks closer to nanoentrepreneurs through the participation of microfinance institutions (MFIs) and non-bank financial companies (NBFC) as credit institutions.

These are in addition to the programmed commercial banks (private and public, cooperative banks, regional rural banks, and SHG banks).

About the PM-SVANidhi scheme:

It is a scheme launched by the central government within the scope of the Atma Nirbhar Package. The plan aims to bring relief to street vendors and has already had a response of more than 1.5 lakh from vendors.

PM SVANidhi Scheme was launched on June 1, 2020 by the Ministry of Housing and Urban Affairs to provide affordable working capital loans to street vendors so that they can resume their livelihoods which have been deeply affected due to the ongoing lockdown. of COVID-19.

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