The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched by the Ministry of Housing and Urban Affairs on June 01, 2020 for providing affordable Working Capital loan to street vendors to resume their livelihoodsthat have been adversely affected due to Covid-19 lockdown.
The duration of the scheme initially was until March 2022. It has been extended till December 2024, with focus on enhanced collateral free affordable loan corpus, increased adoption of digital transactions and holistic socio-economic development of the Street Vendors and their families.
Scheme Benefits
Vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis.
There will be no penalty on early repayment of loan.
The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
The vendors can avail the facility of escalation of the credit limit on timely/ early repayment of loan.
Obtaining a loan is a financial strategy that allows individuals or businesses to access funds for various purposes, such as starting a business, purchasing a home, or handling unexpected expenses. Typically, loans involve borrowing a specific amount from a lender, and the borrower agrees to repay the loan along with interest over a predetermined period. Loans come in various forms, including personal loans, home mortgages, and business loans, each tailored to meet specific financial needs. The application process often involves providing information about credit history, income, and the purpose of the loan. Responsible borrowing and timely repayment contribute to maintaining a positive credit profile, facilitating future financial opportunities.