#PMModiScheme

[hybiz12]

Over 5 lakh applications received under the PM SVANidhi scheme. Number of loan sanctions under the scheme crosses 1 lakh The number of loan sanctions and the number of applications received under PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has crossed the mark of 1 lakh and 5 lakhs respectively within 41 days of commencement of the lending process on July 02, 2020. The PM SVANidhi scheme has generated considerable enthusiasm among the street vendors, who have been looking for access to affordable working capital credit for re-starting their businesses post COVID-19 lockdown. The PM SVANidhi Scheme was launched by the Ministry of Housing & Urban Affairs under the ambit of ‘AtmaNirbhar Bharat Abhiyan’. It aims at facilitating collateral-free working capital loans up to Rs 10,000 of 1-year tenure, to about 50 lakh street vendors in the urban areas, including those from the surrounding peri-urban/ rural areas, to resume their businesses post COVID-19 lockdown. Incentives in the form of interest subsidy @ 7% per annum on regular repayment of the loan, cashback up to Rs 1,200 per annum on undertaking prescribed digital transactions, and eligibility for enhanced next tranche of loan have also been provided. PM SVANidhi Scheme envisages bringing ‘Banks at the doorsteps’ of these ‘nano-entrepreneurs’ by engaging the Non-Banking Financial Companies (NBFCs) and the Micro-Finance Institutions (MFIs) as lending institutions in addition to Scheduled Commercial Banks – Public & Private, Regional Rural Banks, Cooperative Banks, SHG Banks, etc. The onboarding of the vendors on digital payment platforms is a very important component to build the credit profile of the vendors to help them become part of the formal urban economy.