Paisa Portal

PAiSA," which is an acronym for Portal for Affordable Credit and Interest Subvention Access is a centralised portal for the processing of interest subvention on bank loans to beneficiaries under Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM). This portal helps in ensuring greater transparency and efficient delivery of services to beneficiaries under DAY-NULM. The portal was designed and developed by the Allahabad Bank. All 35 states / Union Territories & all scheduled commercial banks, Urban Local Bodies (ULBs), RRBs and Cooperative Banks are expected to be onboarding the Paisa Portal by December 2018.

Interest Subvention

Interest subvention is a kind of subsidy which is given on interest rates by the government. In DAY-NULM, the interest subsidy on bank loans is made available to the urban poor in setting up individual and group enterprises as a part of

Self Employment Programme (SEP). Interest subsidy of over and above 7 % Rate of Interest (ROI) will be available on a bank loan i.e. the difference between 7 % p.a. of ROI and the prevailing ROI (determined by the bank) will be provided to banks by the Government under NULM. The Pictograph below gives an idea about the working of Interest subvention scheme.

Without Interest Subvention

With Interest Subvention

Projected Outcomes

Direct Benefit Transfer(DBT) of subvention on a monthly basis under DAY-NULM will give the necessary financial support to small entrepreneurs on time.
It will plug leakages and pilferage in the transfer of funds reaching beneficiaries.
It will eliminate the duplicity of data.

DAY-NULM

Deendayal Antyodaya Yojana-NULM seeks to augment the employment opportunities and incomes of the urban poor via- skill development and training, setting up of individual and group micro-enterprises, the formation of Self-Help Groups, building shelters for homeless, supporting street vendors in creating infrastructure, innovative support to rag pickers, differently abled etc. The DAY-NULM is administered 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.