Pradhan Mantri SVAnidhi Yojna

Context

     Recently, loans amounting to 3,119 crores have been released to the beneficiaries by the lending institutions under the PM SVAnidhi scheme.

Highlight on the scheme

It is a central sector scheme introduced and implemented by the Ministry of Housing and urban affairs since June 01, 2020, with the objective to facilitate a collateral-free working capital loan to Street Vendors to restart their businesses after being negatively affected by the covid-19 pandemic. The schemes have the following objectives;

• Under this scheme, the vendor can avail a collateral-free working capital loan of up to 10000 with one year term and enhanced 20000 and  50000 in the second and third tranches respectively, after the repayment of the previous.
• An interest subsidy of 7% per will also be provided to incentivize the regular payment by the beneficiaries.
• Also, included a feature of a cashback up to Rs 1200 per year to reward digital transactions.

• A recent release observed that as of March 15, 2022, 28.8 lakh street vendors get a benefit under the scheme.