During the Corona epidemic, many small shopkeepers and street vendors had to close their businesses. During this hard time, the government gave them hope. The Pradhan Mantri SVANidhi Yojana was launched on 1 June 2020. It has changed the lives of many families by giving unsecured loans worth crores of rupees so far.
The aim of PM SVANidhi Yojana is to revive the business of small vendors by giving them easy loans without any guarantee. This scheme not only gives financial help but also provides interest subsidy and cashback on digital payments if the payments are made on time. Now the government is preparing the second phase of this scheme, which will benefit even more vendors.
Who Gets the Benefit?
This scheme is for people who sell goods on the street in cities or towns. It includes vendors selling vegetables, fruits, chaat, clothes, tea, or other items. To get the benefit, they must have been working on or before 24 March 2020 and be registered with the local authority.
How Much Help is Available
- Under the scheme, a first loan of Rs 10,000 is given.
- Vendors who repay the loan on time can get a second loan of Rs 20,000 and a third loan of up to Rs 50,000.
- The scheme also gives a 7% annual interest subsidy, which is sent directly to the bank account.
- If vendors make digital payments, they can get cashback up to Rs 1,200 every year.