Categories: Business

PM Swanidhi Scheme: 5 lakh people apply for loan in 41 days

five lakh small time vendors applied for loans in PM SVANidhi scheme
Image Source: PTI

New Delhi More than 5 lakh people have applied under the Prime Minister Street Vendors Self-Dependent Fund (PM Swanidhi) Scheme. The lending process has started from July 2. The introduction of the PM Swanidhi scheme has seen a lot of enthusiasm among street traders who have started their business by putting street hawkers who are looking for cheap loans to resume their operations after the Kovid-19 lockdown.

The PM Swanidhi Yojana has been launched by the Ministry of Housing and Urban Affairs under the self-reliant India campaign. The aim, the ministry said, is to provide about 50 lakh street vendors (street-dwelling small traders) in urban areas and adjoining semi-urban, rural areas with no guarantee to resume their business after Kovid-19 lockdown. To provide a working capital loan of up to Rs 10,000 for a period of one year.

It also provides an interest subsidy of 7 percent per annum as an incentive for regular repayment of loans, cashback of up to Rs 1,200 per annum for scheduled digital transactions and further eligibility for further loans.

Non-banking financial companies (NBFCs) and small financial institutions (MFIs) as lending institutions other than scheduled commercial banks – public and private, regional rural banks, cooperative banks, self-help group (SHG) banks The idea of ​​extending the services of banks to these small entrepreneurs is linked to the scheme. Bringing these vendors to digital payment platforms is a very important component to building their credit profile to help them become part of the formal urban economy.

The responsibility of implementing this scheme has been given to Small Industries Development Bank of India (SIDBI). For lending to street vendors, these lending institutions are provided a graded guarantee cover based on their portfolio to encourage them through Credit Guarantee Fund Trust for Small and Medium Enterprises (CGTMSE).

This post was published on August 12, 2020 9:30 pm

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