PM SVANidhi App Launched to Street Vendors Apply for Micro Loans (Download PDF)

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PM SVANidhi App Launched to Street Vendors Apply for Micro Loans

  • PM SVANidhi (PM Street Vendor՚s Atma Nirbhar Nidhi) App was launched by the Urban Affairs Ministry.
  • It will provide affordable working capital loan to street vendors to resume their livelihoods that have been adversely affected due to lockdown.
  • It will provide a user-friendly digital interface for lending institutions (LIs) and their field functionaries for sourcing and processing loan applications of street vendors under the scheme.
Benefits for Repayment of Loans

Overview

  • The App is a step towards boosting the use of digital technology.
  • It will enable field functionaries of LIs like Banking Correspondents (BCs) and Agents of Non-Banking Financial Companies (NBFCs) /Micro Finance Institutions (MFIs) , who have proximity with the street vendors, to ensure maximum coverage of the scheme.
  • It is believed that launching the mobile App will give impetus to the implementation strategy of the scheme besides promoting paper less digital accessing micro credit facilities by the street vendors.
  • The website has already been launched.
  • The web portal of PM SVANidhi has all the features like the app.
  • The features include
    • vendor search in the survey data
    • e-KYC of applicants
    • processing of applications
    • real time monitoring
  • The app can be downloaded from Google Play store for use by the LIs and their functionaries.
  • The scheme targets to benefit around 50 lakh street vendors in urban areas including those from surrounding peri-urban/rural areas.
  • Under the scheme, the vendors can avail a working capital loan of up to ₹ 10,000, that can be repaid in monthly installments in the tenure of one year.
  • On timely repayment of the loan, an interest subsidy@7 % per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
  • There will be no penalty on early repayment of loans.
  • The scheme promotes digital transactions through cash back incentives up to an amount of ₹ 100 per month.
  • The vendors can also achieve their ambition of going up on the economic ladder by availing the facility of enhancement of credit limit on timely/early repayment of loan.

- Published/Last Modified on: December 30, 2020

Economy, Govt. Schemes/Projects

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