Bhubaneswar: The Odisha Government has granted full remission of stamp duty on loan agreements executed for all three tranches sanctioned under the PM SVANidhi (Pradhan Mantri Street Vendors’ AtmaNirbhar Nidhi) Scheme.
The Revenue and Disaster Management Department has issued an order 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.
Accordin
g to the order, 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 aimed to support street vendors affected by the COVID-19 pandemic by providing collateral-free working capital loans.
The scheme now provides affordable working capital loans to street vendors to help them resume business activities post-pandemic
Officials stated that the move will encourage more street vendors to access formal credit without worrying about additional stamp duty costs.