The Modi government gives loans of up to Rs 10,000, without any guarantee

Lockdown has affected most of the businesses not only India but also in the entire world. Every nation has announced a Stimulus package to recover their economy again from this pandemic. People need money to start work again. Due to the long process of the bank and high interest rates, people are reluctant to take loans. The Modi government has decided to provide an instant loan of Rs 10,000 to hawkers, street hawkers and small traders in the stimulus package.

Rs. 10,000 is available under the Self-Reliance Fund Scheme. The hawkers, street hawkers and small traders will now be able to get a loan of Rs 10,000 under the Atamnirbhar Fund scheme through 308 lakh Common Service Centers (CSCs) spread across the country. CSC e-Governance Services India Limited, the government’s digital and e-governance services arm, said
The Pradhan Mantri Street Vendors Self-Reliance Fund Scheme (PMSVAFY) is fully funded by the Ministry of Housing and Urban Affairs. Under this scheme, loans up to Rs. 10,000 are made available to small traders with hawkers, street hawkers and lorries. Under the scheme, these borrowers are also encouraged to repay the loan regularly and are also rewarded on Digital Transaction.

The scheme will formalize lorries, hawkers and create new opportunities for the sector. It will also help in registering these small traders under the CSC scheme. Sanjay Kumar, Joint Secretary, Ministry of Housing and Urban Affairs, said that under the scheme, working capital of up to Rs 10,000 would be made available to hawkers in the city area. This capital will be for one year and will have to be paid in monthly installments. He said no address proof or guarantee would be taken by the lending institution for this loan. ‘All merchants will have to make digital transactions’

Kumar further said that SIDBI has been appointed as the implementing agency for the scheme and has received two lakh applications so far and from that loans of 50000 traders have been sanctioned.

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