During the COVID-19 pandemic, the Indian government initiated various relief programs to assist the public.
One notable scheme is the Prime Minister Street Vendor Self-Reliant Fund, known as PM Svanidhi Scheme.
This initiative offers loans to street vendors impacted by the pandemic.
While interest is typically applied to these loans, adhering to certain conditions can exempt borrowers from interest charges and even secure interest subsidies from the government.
Understanding PM Svanidhi Scheme
Launched on June 1, 2020, PM Svanidhi is a microloan program designed for urban street vendors.
Its primary aim is to provide unsecured loans of up to Rs 50,000 to street vendors. Initially, vendors can borrow up to Rs 10,000, repayable over 12 months.
By making timely repayments, they can subsequently qualify for larger loans, with the potential to borrow up to Rs 20,000 in the second round and Rs 50,000 in the third.
Government Offers 7% Interest Subsidy
Under this scheme, those who diligently repay their loans benefit from a 7% interest subsidy, equivalent to approximately Rs 400, deposited into their Jan Dhan accounts.
Furthermore, participants can enjoy cashbacks of up to Rs 1,200 per year on digital transactions.
Over 50 Lakh Vendors Benefitting
Recent government updates reveal that over 50 lakh street vendors have enrolled in the PM Svanidhi scheme.
A total of 65.75 lakh loans have been disbursed, amounting to more than Rs 8,600 crore.
Additionally, the scheme has witnessed a remarkable 113.2 crore digital transactions, totaling Rs 1,33,003 crore, with beneficiaries receiving cashbacks worth Rs 58.2 crore.
