The Central Government’s PM Svanidhi Yojana has emerged as a significant support system for those aiming to kickstart their own businesses, particularly targeting street vendors affected during the COVID-19 period.
The scheme has witnessed substantial participation, with over 50 lakh beneficiaries, including 15.79 lakh women and 230 transgenders.
Key Features of PM Svanidhi Yojana:
Financial Assistance
The scheme offers a micro-credit facility, providing a loan of up to Rs 50,000 without the need for any guarantee.
Loan Repayment Structure
An initial loan of up to Rs 10,000 is available without any guarantee. Repayment period for the first loan is 12 months. Subsequent loans of Rs 20,000 and Rs 50,000 can be availed upon successful repayment of the initial loan.
Interest Subsidy:
Beneficiaries can enjoy an interest subsidy at a rate of 7 percent, amounting to up to Rs 400.
Cash Back Incentive:
Customers are eligible for cashback incentives of up to Rs 1200 every year. Cashback ranges from Re 1 to Rs 100 per month on digital transactions, totaling up to Rs 1200 annually.
Significant Benefits and Statistics:
Demographic Distribution:
65% of the beneficiaries fall in the age group of 26-45. Women constitute 43% of the total beneficiaries.
Urban Presence:
Approximately 5.9 lakh beneficiaries are in six mega cities.
Loan Distribution:
Over 70 lakh loans have been distributed across three installments. More than 53 lakh street vendors have benefited from the scheme.
The total loan amount disbursed under the scheme has reached Rs 9,100 crore.
The PM Svanidhi Yojana stands as a testament to the government’s commitment to supporting small businesses, fostering entrepreneurship, and providing financial empowerment to those in need.
