The Union Cabinet gave its nod to the special credit scheme for street vendors on Monday. This will enable the track to resume its business without any delay. The government has named it PM SVANidhi or PM Street Vendors Self-reliant fund. Under this special credit scheme, 50 lakh street vendors who are vending on or before 24th March 2020 can avail loans up to Rs. 10,000. This was stated by Union Minister Prakash Javadekar on Monday while briefing the cabinet decisions. The Union Cabinet chaired by Prime Minister Narendra Modi met on Monday.
Who will get the benefit of this scheme:
Under the scheme, every street vendor can avail loans up to Rs. 10,000. This amount can be returned to the installment within a year of the track. The loan will be transferred to the street vendors who repay the loan on behalf of the Government in their account as an annual interest subsidy of seven%. There is no provision of fine under the scheme.
Know the highlights of this scheme:
1. Mobile app and web portal based application process
2. No guarantee will be required for this loan
3. Initial loan up to Rs 10,000 for a year
4. Seven percent interest subsidy on repayment of loans on or before time
5. Eligible creditors will be paid subsidy on a half-yearly basis
6. Eligibility of more loans in case of timely and early payment of the first loan
7. The facility of monthly cashback on receipt or payment of digital transactions
Finance Minister Nirmala Sitharaman announced this credit facility giving details of the self-reliant India package. Prime Minister Narendra Modi had last month announced a relief package of about 21 lakh crore rupees to make the country self-reliant and to fight the Coronavirus crisis.
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