PM SVANidhi: More subsidized loans, credit card up to Rs 30,000, street vendors are going to have a great time..

The government has completed preparations to bring the Pradhan Mantri Svanidhi Yojana (PM SVANidhi) in a new form. Under this, now the street vendors working in the cities will not only get a loan with more subsidy than before, but they will also be given a credit card with a limit of up to Rs 30,000. This decision has been taken in collaboration with the banks so that these small businessmen can get cheap and accessible loans.

This credit card will be given to those vendors who have repaid the installments of three subsidy loans of Rs 10,000, Rs 20,000, and Rs 50,000 given in the first phase on time. This scheme will soon be presented for cabinet approval. The government hopes that this decision will give financial strength to lakhs of small vendors across the country and they will be able to become self-reliant.

Rural vendors will also get loans.

A Times of India report quoted sources as saying that now this benefit will not be limited to urban street vendors, but will also be given to those vendors from rural areas who come to cities in search of employment. In this new form, the government is also considering adding assistance of Rs 10,000 to the loan amount.

The facility of credit cards will be given to those vendors whose credit rating is good. This will make it easy for them to get working capital for their business. The banks will decide the terms and repayment rules of this credit card.

Benefit to 68 lakh people

Finance Minister Nirmala Sitharaman said in her budget speech that this scheme launched in 2020 during the time of Kovid-19 has provided relief to more than 68 lakh street vendors from high-interest informal loans. He said that to make this scheme stronger, more loans from banks, UPI-linked credit cards and capacity-building support will also be added.

What is PM SVANidhi Yojana

PM SVANidhi Yojana is a micro loan scheme launched by the Government of India, which aims to provide financial assistance to street vendors and small shopkeepers. It was launched in June 2020. In the first phase, a loan of up to Rs 10,000 is given. On repaying the first loan on time, a loan of up to Rs 20,000 is available and on repaying it, a loan of up to Rs 50,000 is given. If the loan is repaid on time, an annual interest subsidy of 7% is given.

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