BUSINESS
PM SVANidhi Scheme: Big news for street vendors! The Modi government will offer loans and credit cards up to ₹30,000; Know in detail
The central government runs several schemes for small businesses and individuals in need. These schemes play a significant role in providing financial assistance to businesses through loans. One such important scheme is the Pradhan Mantri SVANidhi Yojana (PM SVANidhi). Significantly, under this scheme, street vendors can now access credit up to ₹30,000 in addition to loans. How? Find out using the information below.
What is this scheme?
Launched in June 2020 during the COVID-19 pandemic, the Pradhan Mantri Swanidhi Yojana primarily aims to provide financial assistance to street vendors. Under this scheme, eligible beneficiaries are given loans in different stages. Initially, loans can be received up to ₹15,000, then ₹25,000, and in the next stage, up to ₹50,000.
Credit card up to Rs 30,000
Under the PM SVANidhi scheme, eligible street vendors will be issued a UPI-linked RuPay credit card. The credit limit on this card can be up to Rs 30,000. However, the initial operating limit will be Rs 10,000. If the customer's usage and repayment record remains good, this limit can be gradually increased to Rs 30,000. Another special feature of this card is the interest-free credit period. Depending on the policy of the card issuing institution, the interest-free period can be approximately 20 to 50 days. Additionally, the validity of the card can be up to five years from the date of issue.
UPI and AutoPay feature a
seamless digital payment process, as credit cards can be linked to the beneficiary's UPI ID. Furthermore, ECS, NACH, and AutoPay allow automatic payment of bills from bank accounts on the due date.
Who can benefit?
People who sell vegetables, fruits, food, and other items on the street, sidewalk, or on the go, as well as those who provide services like barbers, cobblers, and laundry services, fall into the category of street vendors. The government has extended the loan period for this scheme until March 2030. Therefore, this scheme could be a valuable opportunity to provide financial assistance to small businesses.
PC: India.com
