PM SVANidhi: Special Micro-Credit Facility Scheme launched
Part of: GS-Prelims and GS-II – Welfare Schemes; GS-III – Economy
- 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.
- 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.