In south, more women availed loan scheme for street vendors

• About 41% of the beneficiaries of the government’s loan scheme for street vendors - PM SVANidhi (PM Street Vendors’ AtmaNirbhar Nidhi) - are women, but southern states fare much better than those in the north.

What is the PM SVANidhi Scheme?

• It was launched in 2020 amid the pandemic by the Ministry of Housing and Urban Affairs (MoHUA), Government of India.
• It is a micro-credit facility that provides street vendors a collateral-free loan of Rs 10,000 with low rates of interest (below 12%) for a period of one year, aiding the vendors at getting back on their feet financially.
• In the long term, it aims at -
  • Establishing a credit score for the vendors
  • Creating a digital record of their socio-economic status
• This will enable street vendors to avail the Central government schemes later, formalise the informal sector of the economy and provide them safety nets and a means of availing loans in the future.

Need for the Scheme:

• Many vendors belong to the informal economy, and often borrow from private lenders which charge them exorbitant rates of interest.
• The COVID-19 pandemic and the nationwide lockdown left daily wage workers and street vendors out of work.

Who is Eligible for the Loan?

• All vendors who have been vending from or before (March 24, 2020) and with a certificate of vending can avail the loan.
• As per the Street Vendors Act 2014, the Town Vending Committees (which comprises the local authorities and vendors from an area) issue a certificate of vending after a survey has been conducted of all the vendors.

Performance of the Scheme on 3-year Completion

• In 10 states and UTs, almost all in the Southern and North-East region, women are the majority of the beneficiaries.
  • Kerala is an exception, but this state has been a pioneer in fostering women’s empowerment through its own programmes like the Kudumbashree.
• The social fabric of the regions has a part to play in women outnumbering men in the number of beneficiaries.
  • For example, in the matrilineal societies of Meghalaya where the youngest daughter inherits property and women operate most enterprises.
• In some states, the local authorities targeted women’s self-help groups (SHGs) as beneficiaries.
  • For example, Andhra Pradesh’s MEPMA (Mission for Elimination of Poverty in Municipal Areas) was already working with SHGs.

Various Challenges in Implementing the Scheme:

• Uneven implementation of the Street Vendors Act across the states: The Act necessitates a survey of the vendors to issue a certificate of vending. However, many states and cities have not conducted the survey yet.
• Some municipalities are also slow in issuing LORs: In the absence of the survey, the urban local bodies (ULBs) can provide a Letter of Recommendation (LOR), if the vendor is a member of a vendor association.