In the PM-SVANidhi Scheme (2020), the urban street vendors are eligible to avail a Working Capital Loan up to 10,000 with a tenure of:
A1 year
B2 years
C3 years
D5 years
Answer:
A. 1 year
Read Explanation:
PM-SVANidhi Scheme: Key Features for Urban Street Vendors
Working Capital Loan
- The Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM-SVANidhi) scheme was launched in June 2020.
- It aims to provide affordable working capital loans to urban street vendors to resume their livelihoods, which were severely impacted by the COVID-19 pandemic.
- Eligible urban street vendors can avail a working capital loan of up to ₹10,000.
Loan Tenure and Interest Subsidy
- The loan has a tenure of 1 year.
- Repayment can be done in monthly installments.
- Vendors who repay the loan on time (i.e., by the due date) are eligible for an interest subsidy.
- The interest subsidy is 7% per annum, credited quarterly to the beneficiaries' bank accounts.
- On timely repayment, the effective interest rate for beneficiaries becomes 3-4%.
Additional Benefits for Good Repayment Behaviour
- After the first loan is successfully repaid, vendors can avail a higher loan amount.
- Subsequent loans can be of higher value, with a credit limit up to ₹20,000 and then up to ₹50,000.
- Digital transactions are encouraged, and vendors using digital means can receive a cashback of up to ₹100 per month.
Implementation and Scope
- The scheme is implemented by the Ministry of Housing and Urban Affairs (MoHUA).
- It is applicable to all urban street vendors who were vending on or before March 24, 2020.
- The scheme has a target to cover 50 lakh street vendors.