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What is SBI PM swanidhi Loan
The SBI PM SVANidhi Loan is a part of the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme in India. This government scheme, launched by the Ministry of Housing and Urban Affairs, aims to provide financial support to street vendors who have been adversely affected by the economic impact of the COVID-19 pandemic.
Key features of the PM SVANSBIidhi scheme and the associated SBI PM SVANidhi Loan include:
- Target Beneficiaries: The scheme is designed to assist street vendors, or “swayamsevaks,” who make a living by vending in the streets of urban and peri-urban areas. These vendors can apply for a working capital loan under this scheme.
- Loan Amount: Street vendors can apply for a loan of up to Rs. 10,000, which is intended to provide them with working capital to restart their businesses.
- Interest Rate: The interest rate for the PM SVANidhi Loan is typically low and subsidized, making it affordable for street vendors.
- Repayment: The loan repayment terms are flexible, with small daily, weekly, or monthly installments. This flexibility is designed to accommodate the income patterns of street vendors.
- No Collateral: Street vendors are not required to provide collateral or security for this loan.
- Digital Process: The application and disbursal process is typically conducted digitally, making it more accessible and efficient for street vendors.
- Implementation: The scheme is implemented by various banks, including the State Bank of India (SBI), as well as microfinance institutions and non-banking financial companies.