Aimed at providing affordable loans to street vendors PM Narendra Modi led the NDA government to launch a special micro-credit facility scheme. Amid CoronaVirus Outbreak Modi government has been focusing on 'Atmanirbhar Bharat'. PM Svanidhi - Pradhan Mantri Street Vendor's Atmanirbhar Nidhi is a scheme targeting to benefit over 50 lakh street vendors.
As per the initial details, on timely and early repayment of the loan, an interest subsidy at the rate of 7% per annum will be credited to the bank accounts of beneficiaries. Also, Urban Local Bodies play a pivotal role in the implementation of the scheme.
Under the Atmanirabhar Bharat campaign, the government of India is aiming to pave the way for globally competitive MSMEs. The idea behind this is to solve liquidity and credit woes by offering collateral-free automatic loans worth Rs. 3 lakh crore with a 100% credit guarantee. The government also claimed that this will offer much-needed liquidity support to more than 45 lakh MSME units.
As per the government definition of MSME has been expanded by increasing investment limit, bringing in turnover as criteria, and abolishing differences between services and manufacturing MSMEs.
This will further incentivise MSMEs to expand without losing the entitled tax and credit benefits. Tenders of up to Rs 200 crore to not be pursued on the global route, thus giving a competitive advantage of Indian firms.