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PM SVANidhi: Special Micro-Credit Facility Scheme launched

  • IASbaba
  • June 2, 2020
  • 0
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PM SVANidhi: Special Micro-Credit Facility Scheme launched

Part of: GS-Prelims and GS-II – Welfare Schemes; GS-III – Economy

In News:

  • The Ministry of Housing and Urban Affairs recently launched a Special Micro-Credit Facility Scheme for providing affordable loans to street vendors.
  • The scheme is PM SVANidhi – PM Street Vendor’s Atma Nirbhar Nidhi

Key takeaways

  • The vendors can avail a working capital loan of up to Rs. 10,000. 
  • It will be repayable in monthly instalments in the tenure of one year.
  • On timely/early repayment of the loan, an interest subsidy at 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on six monthly basis. 
  • There will be no penalty on early repayment of loan.
  • Over 50 lakh people, including vendors, hawkers, thelewalas, etc. are likely to benefit from this scheme.
  • Street vendors from peri- urban/ rural areas have become beneficiaries of an urban livelihood programme for the first time.
  • MFIs/ NBFCs/ SHG Banks have been allowed in a scheme for the urban poor due to their ground level presence for the first time. 

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