PM SVANidhi Scheme: In the Corona era, the Pradhan Mantri Street Vendors Atmanirbhar Nidhi (PM-SVANidhi) scheme was started to provide loans to street vendors for business. Under the scheme, beneficiaries are given loans up to Rs 50 thousand. There are many special features of this scheme, let’s know.
Starting from 10 thousand rupees
Under the scheme, a working capital loan facility of up to Rs 10,000 is provided without any guarantee for a period of one year. On timely repayment of this loan, a second loan facility of Rs 20,000 and a loan facility of Rs 50,000 is provided.
keep these things in mind
-Selection of the borrower is based on the eligibility criteria prescribed in the scheme.
-E-KYC is mandatory for all direct loan applicants.
-Credit Information Report has to be verified to ensure that the existing loan account of the borrower is not classified as NPA/Fraud/Willful Default.
The scheme uses Aadhaar-based e-KYC, uses an end-to-end IT platform and SMS-based notifications to provide updates on the status of the application. All lending institutions in India, including NBFCs/MFIs and DPAs, have participated with the aim of reducing urban poverty in the country. States/ULBs are responsible for identifying eligible street vendors and mobilizing new applications under the scheme.
7% interest subsidy
The rate of interest subsidy is 7 percent. The subsidy amount will be deposited directly into your account on a quarterly basis. In case of early payment, the admissible subsidy amount will be deposited in one go. For a loan of Rs 10,000, if you pay all the 12 EMIs on time, you will receive around Rs 400 as interest subsidy amount.
