PAiSA Portal

The PAiSA Portal, an acronym for Portal for Affordable Credit and Interest Subvention Access, serves as a crucial centralized platform for processing interest subvention on bank loans under the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM). It ensures greater transparency and efficient service delivery to beneficiaries of DAY-NULM. The Allahabad Bank designed and developed this portal, bringing onboard all 35 states/Union Territories, scheduled commercial banks, Urban Local Bodies (ULBs), Regional Rural Banks (RRBs), and Cooperative Banks by December 2018.

Understanding Interest Subvention

Interest subvention refers to a subsidy provided on interest rates by the government. Under DAY-NULM, this interest subsidy is made available to the urban poor for establishing individual and group enterprises as part of the Self Employment Programme (SEP). The government offers an interest subsidy above 7% Rate of Interest (ROI) on bank loans. Essentially, the difference between 7% p.a. ROI and the prevailing ROI, as determined by the bank, is covered by the government under NULM.

Without Interest Subvention

With Interest Subvention

Projected Outcomes and Benefits

The Direct Benefit Transfer (DBT) of subvention on a monthly basis under DAY-NULM ensures prompt financial support to small entrepreneurs.
It helps in controlling leakages and pilferage in funds transfer to beneficiaries.
It eliminates data duplicity, making the system more robust and reliable.

DAY-NULM: A Comprehensive Upliftment Strategy

Deendayal Antyodaya Yojana-NULM aims to enhance employment opportunities and incomes for the urban poor through various means including skill development and training, forming individual and group micro-enterprises, creating Self-Help Groups, providing shelters for the homeless, and supporting street vendors with essential infrastructure. Furthermore, it offers innovative support for groups like ragpickers and the differently-abled, governed by the Ministry of Housing & Urban Affairs.

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Frequently Asked Questions

Common questions about Interest Subvention Portal for Affordable Credit.

The PAiSA Portal, which stands for Portal for Affordable Credit and Interest Subvention Access, is a centralized platform designed for processing interest subvention on bank loans provided to beneficiaries under the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM). It helps ensure transparency and efficient delivery of services to the beneficiaries of DAY-NULM.

Interest subvention is a type of subsidy provided by the government on interest rates. Under DAY-NULM, interest subsidy is offered on bank loans to the urban poor for setting up individual and group enterprises as part of the Self Employment Programme (SEP). This subsidy covers the difference between the prevailing Rate of Interest (ROI) determined by the bank and 7% per annum, providing financial support to small entrepreneurs.

The PAiSA Portal facilitates Direct Benefit Transfer (DBT) of interest subvention on a monthly basis under DAY-NULM. This ensures that the necessary financial support reaches small entrepreneurs on time, eliminating leakages and pilferage in the transfer of funds. Additionally, it eliminates duplicity of data, further streamlining the process.

All 35 states/Union Territories, scheduled commercial banks, Urban Local Bodies (ULBs), Regional Rural Banks (RRBs), and Cooperative Banks are expected to onboard the PAiSA Portal by December 2018, as per the article.

DAY-NULM is a scheme administered by the Ministry of Housing & Urban Affairs, aimed at augmenting employment opportunities and incomes for the urban poor. It focuses on skill development and training, setting up individual and group micro-enterprises, formation of Self-Help Groups, building shelters for the homeless, supporting street vendors, and providing innovative support to rag pickers and differently-abled individuals.

The PAiSA Portal was designed and developed by Allahabad Bank, as mentioned in the article.

By facilitating Direct Benefit Transfer (DBT) of interest subvention and eliminating duplicity of data, the PAiSA Portal helps ensure greater transparency in the delivery of services to beneficiaries under DAY-NULM.

Under the interest subvention scheme, the government provides a subsidy on the interest rates charged by banks. For loans under DAY-NULM, the government covers the difference between the prevailing Rate of Interest (ROI) determined by the bank and 7% per annum, effectively reducing the interest burden on the borrowers.

The article highlights that the PAiSA Portal is expected to provide timely financial support to small entrepreneurs through Direct Benefit Transfer (DBT) of interest subvention. It is also expected to eliminate leakages, pilferage, and duplicity of data in the fund transfer process.

The Deendayal Antyodaya Yojana-NULM (DAY-NULM) aims to augment employment opportunities and incomes for the urban poor through various initiatives such as skill development, promotion of micro-enterprises, formation of Self-Help Groups, providing shelter for the homeless, supporting street vendors, and providing innovative support to rag pickers and differently-abled individuals.