PM SVANidhi: Special Micro-Credit Facility Scheme launched

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.