“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 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
- 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.
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.