Question
How much interest subvention is provided under PM
SVaNIDHI Scheme to the borrowersSolution
The vendors, availing loan under the scheme, are eligible to get an interest subsidy @ 7%. The interest subsidy amount will be credited into the borrower’s account quarterly. The PM SVANidhi scheme offers incentives in the form of: ·  interest subsidy @ 7% per annum on regular repayment of loan ·  cashback upto INR1200/- per annum on undertaking prescribed digital transactions ·  eligibility for enhanced next tranche of loans         The scheme intends to facilitate collateral free working capital loans of up to INR10,000/- of one-year tenure, to approximately 50 lakh street vendors, to help resume their businesses in the urban areas, including surrounding peri-urban/rural areas. On timely or early repayment, the vendors will be eligible for the next loan with an enhanced limit of a maximum of 200% of the earlier loan, subject to a ceiling of ₹20,000. Eligible member lending institutions for the said scheme are: All Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs) & SHG Banks established in some States/UTs e.g. Stree Nidhi etc.
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