PM SVANidhi Scheme

GS-II | Governance

PM SVANidhi Scheme


Q. Why in Next/Context :

·     Over 46.54 lakh small working capital loans have been disbursed to street vendors under the Prime Minister Street Vendor’s AtmaNirbharNidhi (PM-SVANidhi) in the three years since it was launched on June 1, 2020.

·      According to the PM-SVANidhi portal of the Union Housing and Urban Affairs Ministry, a total of 46,54,302 loans had been disbursed

·   Out of those loans, about 40% (18,50,987) had been repaid so far. Under the scheme, street vendors are eligible for a first-term loan up to Rs.10,000. If they repay the first loan, they are then eligible for a second-term loan of up to Rs.20,000 and subsequently, a third-term loan of up to Rs.50,000.

Q. What is Scheme?

·   This is a Central Sector Scheme to facilitate street vendors to access affordable working capital loan for resuming their livelihoods activities, after easing of lockdown

Q. What are the objectives of the Scheme?

(i) To facilitate working capital loan up to Rs.10,000 at subsidized rate of interest;

(ii) To incentivize regular repayment of loan; and

(iii) To reward digital transactions.

Q. What are the salient features of the Scheme?

(i) Initial working capital of up to Rs. 10,000/-

(ii) Interest subsidy on timely/ early repayment @ 7%

(iii) Monthly cash-back incentive on digitaltransactions

(iv) Higher loan eligibility on timely repayment of the first loan.

Q. Who is a Street Vendor/hawker?

·     Any person engaged in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement etc., from a temporary built up structure or by moving from place to place. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, artisan products, books/stationary etc. and the services include barber shops, cobblers, pan shops, laundry services etc.

Q. Which lending institutions will provide credit?

·         Scheduled Commercial Banks

·         Regional Rural Banks

·         Small Finance Banks

·         Cooperative Banks,

·         Non-Banking Financial Companies

·         Micro-Finance Institutions, and

·         SHG Banks.

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