PM Svandhi’s Scheme

https://newsonair.gov.in/Main-News-Details.aspx?id=459857

About the news:

• PM Svanidhi’s scheme gives small loans to needy people without the condition of collateral or a CIBIL score.
• The Government emphasised on increasing the banking penetration in rural areas.
• The Government directed banks to reduce the waiting period for loan disbursement.
• Option to work from home: The Bill introduces a provision that states that an employer may permit a woman to work from home.
• Crèche facilities: The Bill introduces a provision which requires every establishment with 50 or more employees to provide crèche facilities within a prescribed distance. 
• The woman will be allowed four visits to the crèche in a day. 
• This will include her interval for rest.
• Informing women employees of the right to maternity leave.
• It does not apply to the unorganized sector.
• Implementing agency: Small Industries Development Bank of India is the technical partner for implementation of this scheme. It manages the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises.
• Salient features:
  • Vendors can avail working capital loan of up to Rs 10,000, which is repayable in monthly instalments within one year.
  • On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries
  • Monthly cash back incentive on digital transactions
  • There will be no penalty on early repayment of loan.

Practice Questions for Prelims

Which of the following statements about PM SVANidhi Scheme is correct?
1. This scheme was launched by the Ministry of finance
2. It was launched on April 1, 2020
3. Vendors can avail a working capTial loan of up to Rs. 100000 which is repayable in monthly installments in the tenure of one year
4. There will be no penalty on early repayment of loan

Ans. 4)

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