The number of loan sanctions and number of applications received under PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme have crossed the mark of 1 lakh and 5 lakhs respectively within 41 days of commencement of the lending process on July 02, 2020, according to an official release by the government on Wednesday.
The scheme was launched to financially help street vendors bounce back from the setback received during the coronavirus pandemic by giving them access to affordable working capital credit for resumption of businesses post Covid-19 lockdown. The scheme announced by the ministry of housing and urban affairs provides for collateral-free working capital loans up to Rs 10,000 of 1 year tenure and was aimed to assist about 50 lakh street vendors in the urban areas.
“Incentives in the form of interest subsidy @ 7% per annum on regular repayment of 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 under the PM SVANidhi scheme,” the official statement added.
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One of the secondary stated objectives of the scheme is to create a credit profile of these small time entrepreneurs by onboarding them on digital payment platforms to integrate with the formal urban economy, the statement says.
The government has also provisioned to provide collateral free credit to several other sectors of the economy as part of its financial package to mitigate the adverse economic impact of coronavirus pandemic and to ease liquidity flow in the market.
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