PM SVANidhi scheme extended till 2024, to encourage loans up to Rs 8,100 crore

6. PM SVANidhi scheme extended till 2024, to encourage loans up to Rs 8,100 crore

The Cabinet Committee on Economic Affairs (CCEA) approved a proposal to extend the validity of the Prime Minister SVANidhi scheme, which provides subsidized and collateral-free loans to Covid-affected street vendors in urban areas, from March 2022 to December 2024.

A total credit of Rs 8,100 crore will now be made available at a 7% interest subsidy throughout the scheme, up from Rs 5,000 crore previously estimated. The scheme, which will be implemented in June 2020, will provide each beneficiary with a working capital loan of up to Rs 10,000 for one year. Repayment on-time guarantees a loan of up to Rs 20,000 in the second tranche and up to Rs 50,000 in the third tranche.

The government said in a statement that the extension was necessary because “the pandemic and related stress on small businesses have not fully recovered.”

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