Recently, Hardeep Singh Puri, the Minister for Housing and Urban Affairs, commended the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme on its significant three-year milestone. Launched in June 2020 during the COVID-19 Pandemic, the scheme had the objective of empowering street vendors by enabling self-employment, and self-sufficiency, and boosting their self-confidence.
Over the years, PM SVANidhi has emerged as one of India’s most impactful and rapidly expanding micro-credit schemes. It has played a crucial role in promoting financial inclusion, fostering digital literacy, and providing street vendors with dignity and stability in their livelihoods. The scheme’s success highlights the government’s commitment to supporting and uplifting street vendors in the country.
About The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme
The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), a centrally-sponsored scheme, was launched by the Ministry of Housing and Urban Affairs on June 01, 2020, with the aim of providing affordable working capital loans to street vendors who were affected by the Covid-19 lockdown.
Initially, the scheme was set to run until March 2022, but it has been extended until December 2024. The extension focuses on several key aspects, including an enhanced collateral-free affordable loan corpus, promoting the adoption of digital transactions, and ensuring the holistic socio-economic development of street vendors and their families. The extension demonstrates the government’s commitment to supporting street vendors and helping them recover from the impact of the pandemic.
Eligibility
To be eligible for the PM SVANidhi scheme, street vendors must meet the following criteria:
- They must be registered with the local government.
- They must have a valid Aadhaar card.
- They must have a bank account.
- They must be engaged in street vending as their primary source of income.
Loan amount
The maximum loan amount under the PM SVANidhi scheme is ₹10,000. The loan is repayable in 50 weekly installments.
Interest rate
The interest rate on the loan is 7% per annum. The government provides a subsidy of 6%, which brings the effective interest rate down to 1% per annum.
Repayment
Loan repayments must be made on a weekly basis. Repayment can be made through a variety of channels, including online, through banks, and through post offices.
Benefits
The PM SVANidhi scheme provides a number of benefits to street vendors, including:
- Access to working capital
- Increased income
- Improved financial stability
- Enhanced social status
- Reduced vulnerability to poverty
- In addition to the PM SVANidhi scheme, a mobile app called PM SVANidhi was introduced to simplify the loan application process and provide comprehensive information about the scheme. This mobile app aimed to make it easier for street vendors to access and navigate the loan application procedures, ensuring a user-friendly experience.
- Furthermore, a special feature was launched on the PM SVANidhi portal in collaboration with the Ministry of Micro, Small, and Medium Enterprises (MSME). This feature enabled street vendors to register under the ‘Udyam’ scheme and obtain an ‘Udyam Assist’ certificate. By promoting their businesses through this certificate, street vendors were able to enhance their visibility and gain recognition in the market. This initiative aimed to empower street vendors further and create opportunities for their sustained growth and development.
Implementing Agency
The implementation agency of the PM SVANidhi scheme is the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi Limited (PM SVANidhi Ltd.). PM SVANidhi Ltd. is a wholly-owned subsidiary of the Small Industries Development Bank of India (SIDBI).
Impact
The PM SVANidhi scheme has had a significant impact on street vendors in India. As of March 2023, the scheme has helped to provide working capital to over 50 million street vendors and has helped to boost their income and financial stability. The scheme has also helped to reduce poverty and vulnerability among street vendors.
Future
The PM SVANidhi scheme is a significant government initiative that has the potential to improve the lives of millions of street vendors in India. The scheme is still in its early stages, but it has already had a positive impact on many street vendors. The government is committed to continuing the scheme and expanding it in the future.
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