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Over 5 lakh applications received under PM SVANidhi scheme

What is the news ?

The number of loan sanctions and number of applications received under 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.

What is PM SVANidhi ?

  • PM Street Vendor’s AtmaNirbhar Nidhi, PM SVANidhi Scheme was launched by Ministry of Housing & Urban Affairs under the ambit of ‘AtmaNirbhar Bharat Abhiyan’.
  • It aims at facilitating collateral free working capital loans upto Rs 10,000 of 1 year tenure,
  • It will benefits 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 loan, cashback upto Rs 1,200 per annum on undertaking prescribed digital transactions and eligibility for enhanced next tranche of loan have also been provided.
  • Small Industries Development Bank of India (SIDBI) is the implementation partner for the scheme.

Need for such schemes

  • The street vendors mostly operate their businesses on very thin margins. The micro-credit support under the scheme is expected to provide not only major relief to such vendors but also help them climb the economic ladder.
  • Use of an integrated IT Platform (pmsvanidhi.mohua.org.in), Web Portal and Mobile App, has enabled the Scheme to extend its reach and benefits to this segment of society
  • Besides this support the objective of minimum government and maximum governance.

 


Source : PIB

Topic : Prelims

GS III : Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

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