PM SVANidhi Scheme: The government is giving loans up to Rs 50,000 without guarantee. Heavy subsidy is being given on this loan. Along with this, cashback is also being given to the borrowers.
New Delhi: PM SVANidhi Scheme: The government is giving loans up to Rs 50,000 without guarantee. Heavy subsidy is being given on this loan. Along with this, cashback is also being given to the borrowers.
In fact, the government approved the continuation of the Prime Minister Street Vendors Self-Reliant Fund (PM Swanidhi) scheme from March 2022 to December 2024.
Street vendors get cheap loans
According to the official statement, this proposal was approved in the meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi. Under the PM Svanidhi Yojana, cheap loans are given to street vendors and vendors without any collateral.
Exercise to make self-reliant
According to the statement, ‘an amount of Rs 5,000 crore was kept for giving loans in this scheme. With the approval of the Cabinet, the total loan amount has increased to Rs 8,100 crore. As a result, street vendors will get working capital, so that they can increase their business and make them self-reliant.
The budget has also been increased to encourage digital payments including ‘cash-back’ for street vendors . About 1.2 crore people of urban areas will benefit from this approval.
Subsidy is given on interest
Under PM Svanidhi Yojana, street vendors get a loan of up to Rs 10,000. Interest subsidy is also given. On repayment of the loan on time, a loan of up to 20 thousand rupees can be taken for the second time and up to 50 thousand rupees for the third time.
Under the scheme, QR codes, training and cashback facilities are also provided to the street vendors to promote digital transactions.
Annual subsidy at the rate of 7 percent on interest and cashback of up to Rs 1,200 is also being given to the borrowers. For a loan of Rs 10,000 at 24 per cent annual interest, the interest subsidy is effectively 30 per cent of the total interest.