Money & Banking

PM SVANidhi-SBI integration to ease processing of loan applications

Our BureauNew Delhi, Oct 7 New Delhi | Updated on October 07, 2020

The Ministry of Housing and Urban Affairs (MoHUA), on Wednesday, launched the Application Programming Interface (API) integration between the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) and the State Bank of India’s eMudra portal to ease the process of receiving and processing of loan applications.

The aim of this integration is to provide benefits to street vendors seeking working capital loans under the PM SVANidhi scheme. Besides SBI, MoHUA also plans to explore similar integration with the other banks in the days to come.

Launched on June 1by the MoHUA, the objective of PM SVANidhi is to provide affordable working capital loans to street vendors affected due to the lockdown.

The eligible vendors are identified as per criteria, including possession of certificate of vending or identity card, issued by urban local bodies.

PM SVANidhi scheme targets to benefit over 50 lakh street vendors, who were selling products on or before March 24in urban areas, including those from the surrounding peri-urban/ rural areas.

Interest subsidy

Under the scheme, vendors can avail a working capital loans of up to ₹10,000, which is repayable in monthly instalments in one year. Timely / early repayment of the loan will ensure an interest subsidy at 7 per cent per annum, which will be credited to the bank accounts of the beneficiaries through Direct Benefit Transfer on a quarterly basis.

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

The scheme also promotes digital transactions through cash-back incentives of up to ₹1,200 per annum.

According to the latest data available, over 20.50 lakh loan applications have been received under the PM SVANidhi Scheme. Of these, over 7.85 lakh loans have been sanctioned and over 2.40 lakh loans disbursed.

Published on October 07, 2020

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