CURRENT AFFAIRS
CURRENT AFFAIRS
Description
The Prime Minister recently praised the achievements of the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Yojana, highlighting its role in financially empowering street vendors across India. Launched during the COVID-19 pandemic, the scheme has become a lifeline for vendors, helping them revive their businesses and achieve self-reliance.
Overview Of PM SVANidhi Yojana
The PM SVANidhi Yojana is a central-sector micro-credit initiative launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA). Its primary objective is to provide affordable working capital loans to street vendors whose livelihoods were impacted by the COVID-19 pandemic. By offering financial assistance, the scheme enables vendors to resume their daily trade and improve their economic stability.
Implementation And Administration
The scheme is administered by the Small Industries Development Bank of India (SIDBI), which ensures smooth disbursal of loans and manages repayment schedules. It integrates digital mechanisms to streamline loan processing and promotes financial inclusion.
Key Benefits For Street Vendors
Working Capital Loan: Vendors can access loans of up to Rs 10,000, repayable in monthly installments over one year.
Interest Subsidy: Timely or early repayment attracts an interest subsidy of 7% per annum, credited directly to the vendor’s bank account through Direct Benefit Transfer (DBT) on a quarterly basis.
No Prepayment Penalty: Early repayment of loans does not incur any additional charges, encouraging financial discipline and timely repayments.
Credit Limit Enhancement: Vendors who repay loans on time can avail increased credit limits for future financial needs.
Digital Transaction Incentives: The scheme encourages cashless payments by offering monthly cashback of up to Rs 100, promoting digital literacy and modern payment practices.
Flexible Usage: The loan can be utilized for any business-related purpose, including purchasing raw materials, paying rent, buying equipment, or covering other operational expenses.
Eligibility Criteria
The PM SVANidhi scheme is inclusive, covering a wide range of street vendors:
Vendors holding a Certificate of Vending or Identity Card issued by the Urban Local Bodies (ULBs).
Vendors identified in surveys conducted by ULBs but not yet issued a Certificate of Vending/Identity Card.
Vendors excluded from ULB-led surveys or who started vending after survey completion, provided they have a Letter of Recommendation (LoR) from the ULB/Town Vending Committee (TVC).
Vendors from peri-urban or rural areas operating within ULB limits, also supported via LoR from the respective ULB/TVC.
Significance And Impact
Since its launch, PM SVANidhi Yojana has emerged as a transformative initiative, strengthening street vendors’ financial independence and contributing to local economies. By enabling digital transactions, promoting credit discipline, and offering financial incentives, the scheme fosters a culture of entrepreneurship among vendors. Additionally, it aligns with India’s vision of AtmaNirbhar Bharat, supporting small-scale businesses and enhancing economic resilience at the grassroots level.
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