With reference to PM SVANidhi Scheme, consider the following statement:

1. The scheme is the initiative of Ministry of Urban and Housing affairs

2. It provides the collateral free loan up to ₹10000 to street vendors in urban areas

3. The scheme also provide safety net to the beneficiaries families by linking them to various socioeconomic welfare schemes

Which of the statements given above is/are correct?

Solution

Ministry of Housing and Urban Affairs (MoHUA) has launched PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme on June 01, 2020 to facilitate collateral free working capital loan upto ₹10,000 of 1 year tenure to street vendors in urban areas to restart their businesses, which were adversely impacted during the Covid-19 pandemic.  The scheme provides incentives in the form of interest subsidy @ 7% per annum on regular repayment of loan and cash-back upto ₹100 per month on undertaking prescribed digital transactions.  Further, on timely or early repayment, the vendors are eligible for enhanced working capital loan of ₹20,000 and ₹50,000 respectively during the next cycle.  Later on, ‘SVANidhi se Samriddhi’ initiative, designed to build safety net for the beneficiaries’ families by linking them to existing 8 socio-economic welfare schemes of the Government of India was added to the Scheme. It was launched in 125 Urban Local Bodies (ULBs) in the first phase on 4th January, 2021 and extended for 126 ULBs on 12th April, 2022.