Centre paid Rs 147.82 crore in interest subsidy on loans under PM SVANidhi

New Delhi [India], April 25 : The central government has paid Rs 147.82 crore in interest subsidy to street vendors under PM SVANidhi scheme since it began in 2020 and till March 31, the Ministry of Housing and Urban Affairs said.

The street vendors availing loans under the scheme are eligible to get an interest subsidy of 7 per cent for all the loans 1st, 2nd, and 3rd loans.

The interest subsidy amount is credited into the borrower's account quarterly.

As per a reply to an RTI query, the Ministry of Housing and Urban Affairs informed: "As of 31st March 2024, interest subsidy of Rs 147.82 crore has been released to scheme beneficiaries."

Lenders have to submit quarterly claims for interest subsidy for quarters ending on June 30, September 30, December 31 and March 31 during each financial year.

The Union housing ministry launched Prime Minister Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi) Scheme on June 1, 2020 with the aim to facilitate collateral-free working capital loans to street vendors to restart their businesses, which were adversely impacted by the COVID-19 pandemic

The scheme facilitates loans up to Rs 10,000 in the first tranche, and then Rs 20,000 and Rs 50,000 in the second and third tranches respectively.

Prime Minister Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi), which was launched in June 2020, has extended more than 84.51 lakh loans till April 25, as per the real-time data on the SVANidhi website.

Out of these, over 30.11 lakh loans have been repaid so far.

The fruits and vegetable sector has the highest uptake of loans under the scheme.

The government has allocated Rs 2,096.49 crore as the total outlay for the PM SVANidhi scheme till 2027-28.

Out of the total outlay, over 60 per cent or 1262.49 crore has been utilised, the RTI reply mentioned. So far, over 1.07 crore applications have been submitted for loans in three categories.