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.”