Bhubaneswar, Jun 17: In a major relief for street vendors across Odisha, the state government has announced a complete waiver of stamp duty on loan agreements executed under the Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme.
The Revenue and Disaster Management Department has issued a notification exempting stamp duty on agreements related to all three loan stages sanctioned under the scheme. The waiver will also apply to hypothecation agreements executed by beneficiaries.
According to the notification, no stamp duty will be levied on agreements pertaining to the first, second and third loan installments under PM SVANidhi. The decision has been taken under Section 9(1)(a) of the Indian Stamp Act, 1899.
The move is expected to reduce the financial burden on street vendors and make access to institutional credit easier. Officials said the exemption would lower the cost of availing loans and encourage more vendors to join the formal banking system.
The state government believes the initiative will strengthen the livelihoods of small traders and contribute to their economic empowerment by providing easier access to working capital.
Launched by the Central Government on June 1, 2020, the PM SVANidhi Scheme aims to support street vendors affected by the COVID-19 pandemic by providing collateral-free working capital loans. Under the scheme, eligible vendors can avail an initial loan of up to ₹10,000 to start or expand their businesses.
Beneficiaries who repay their loans on time are also eligible for an interest subsidy of up to 7 per cent, making the scheme an important financial support mechanism for small vendors across the country.
