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In a bid to help street vendors hit due to the coronavirus lockdown, the Centre on Monday, June 1, launched a special micro-credit scheme to provide an affordable loan of up to ₹10,000 to street vendors.
The PM Svanidhi, or Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi scheme launched by the Ministry of Housing and Urban Affairs is likely to benefit 50 lakh street vendors, who had their businesses operational on or before 24 March. The benefits can be availed till March 22.
"The vendors can avail a working capital loan of up to ₹10,000, which is repayable in monthly instalments in the tenure of one year," the Ministry said in a statement.
"On timely or early repayment of the loan, an interest subsidy of seven per cent per annum will be credited to the bank accounts of the beneficiaries through direct benefit transfer on a six-monthly basis," it added.
There will be no penalty on early repayment of the loan, the Ministry said. The scheme is in pursuance to the announcement made by Finance Minister Nirmala Sitharaman on May 14 to enable street vendors to resume their livelihoods hit due to the national lockdown.
The scheme also allows for escalation of the credit limit on timely or early repayment of the loan. "This means if a street vendor repays the instalments on time or earlier, he or she can develop his or her credit score that makes him/her eligible for the higher amount of term loan such as ₹20,000," the statement said.
The scheme is applicable to vendors, and hawkers, in different areas/contexts who supply goods and services, as well as street vendors in the peri-urban/rural and surrounding areas.Also Read: West Bengal Transfers Rs 20,000 Each To 5 Lakh Families That Lost Their Homes In Cyclone Amphan
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