Question

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:

• A. 1 year
• B. 2 years
• C. 3 years
• D. 5 years

Answer 1

Answer:

A. 1 year

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.