PM SVANidhi stands for Prime Minister Street vendors Atmanirbhar Nidhi. It is a central sector scheme launched in June 2020. It aims to provide micro credit facilities to street vendors affected due to COVID-19 pandemic.
It is implemented under the Ministry of Housing and Urban Affairs, (MoHUA).
Under this scheme, vendors can get collateral-free working capital loans up to ₹10,000, which are repayable in monthly installments in the term of one year.
An enhanced loan of up to ₹20,000 and ₹50,000 on the 2nd and 3rd times respectively, on repayment of earlier loans.
On timely or early repayment of the loan, an interest subsidy at the rate of 7% per annum will be credited to the bank accounts of beneficiaries through the Direct Benefit Transfer quarterly.
The scheme promotes digital transactions through cashback incentives up to an amount of ₹100 per month.
As per the scheme guidelines, a vendor is any person engaged in vending articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement, etc.
‘SVANidhi se Samriddhi’ is an additional programme of PM SVANidhi which was launched in 2021 under the Ministry of Housing and Urban Affairs. It was started to provide social security benefits to street vendors for their holistic development in socio-economic upliftment.
As on November 30, 2022, 31.73 lakh Street Vendors have availed benefit of 1st loan of ₹ 10,000 loan; Out of these 5.81 lakh have availed benefit of second loan of ₹ 20,000 loan; Out of those who availed 2nd loan, 6,926 street vendors have availed benefit of third loan of ₹50,000.
42 lakh street vendors are anticipated to be benefited under PM SVANidhi scheme by December 2024.
Small Industries Development Bank of India (SIDBI) will be the implementation partner of the Ministry of Housing and Urban Affairs for Scheme Administration. SIDBI will leverage the network of lending institutions including the SCBs, RRBs, SFBs, Cooperative Banks, NBFCs and MFIs for scheme implementation.
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