22.7 lakh loans amounting to ₹2,243 crore have been disbursed | UPSC Current Affairs Daily

22.7 lakh loans amounting to ₹2,243 crore have been disbursed to street vendors under SVANIDHI scheme

Ministry of Housing and Urban Affairs (MoHUA) has launched Pradhan Mantri Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi)
It is for providing affordable loans to street vendors.
Scheme was announced as a part of the Economic Stimulus-II under the Atmanirbhar Bharat Abhiyan.
scheme would benefit vendors, hawkers, thelewale and people involved in goods and services related to textiles, apparel, artisan products, barbers shops, laundry services etc. in different areas.

Features:
The vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments within a year. The loans would be without collateral.
There will be no penalty on early repayment of loan.
Those who were vending till 24th March, 2020 can avail the benefits of the scheme
The scheme is valid until March 2022.
On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through direct benefit transfer on a six monthly basis.
The scheme provides for the rise of the credit limit on timely/ early repayment of loans i.e. if a street vendor repays the installments on time or earlier, he or she can develop his or her credit score that makes him/her eligible for a higher amount of term loan such as Rs. 20,000.
The scheme incentivises digital transactions by the street vendors through monthly cash back
MoHUA in collaboration with State Governments will launch a capacity building and financial literacy programme of all the stakeholders and Information, Education and Communication (IEC) activities throughout the country during the month of June and loaning will commence in the month of July
LBs will play a pivotal role in the implementation of the scheme by ensuring to target the beneficiary and reaching to them in an efficient manner.
This platform will integrate the web portal/ mobile app with UdyamiMitra portal of SIDBI for credit management and PAiSA portal of MoHUA to administer interest subsidy automatically.

SOURCE: PIB