PM SVANidhi Scheme facilitates provision of collateral free working capital loan to street vendors

• The Ministry of Housing and Urban Affairs (MoHUA) is implementing Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme since June 01, 2020.
• As on March 24, 2022, a credit of ₹3,170 crore has been disbursed to 29.1 lakh beneficiaries.

Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme

It was announced for providing affordable Working Capital loans to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown. It is being implemented by the Small Industries Development Bank of India (SIDBI)

Scheme Benefits

• Vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
• On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis.
• There will be no penalty on early repayment of loan.
• The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
• The vendors can avail the facility of escalation of the credit limit on timely/ early repayment of loan.

Target beneficiaries

• This scheme targets to benefit over 50 lakh Street Vendors.
• A vendor, according to the scheme guidelines is 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/ stationery etc. and the services include barber shops, cobblers, pan shops, laundry services etc.

Eligibility criteria

• Street vendors in possession of Certificate of Vending/Identity Card issued by Urban Local Bodies (ULBs)
• The vendors, who have been identified in the survey but have not been issued Certificate of Vending/Identity Card; Provisional Certificate of Vending would be generated for such vendors through an IT based Platform.
• ULBs are encouraged to issue such vendors the permanent Certificate of Vending and Identification Card immediately and positively within a period of one month
• Street Vendors, left out of the ULBled identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB/Town Vending Committee (TVC)
• The vendors of surrounding development/peri-urban/rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB/TVC.

Way Forward

The scheme should not be just seen from the perspective of extending loans to street vendors. It should also be seen as a part of an outreach to the street vendors for their holistic development and economic upliftment.

Exam Track

Prelims Takeaway

• PM SVANidhi Scheme
• Direct Benefit Transfer
• Small Industries Development Bank of India (SIDBI)