PM-SVANidhi Scheme stands for Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi Scheme. Launched in June 2020, the nodal ministry for PM-SVANidhi is the Ministry of Housing and Urban Affairs. In order to empower street vendors, the Government of India aims to reach more than 50 lakh street vendors across the country. PM-SVANidhi not only extends loans to them but also works towards their holistic development and economic upliftment.
- With the onset of a global pandemic and a nationwide lockdown, the daily wage workers and street vendors went out of work. Thus, some financial aids were pivotal to getting them back on their feet.
- In a country like India where the informal sector plays a major role in our economy, formalization of the informal sector was becoming a necessity. Hence, the scheme attempts to bring the desired change by providing safety nets to the working population in this sector. In addition to this, it also serves as a means of availing of loans in the future for this section.
- In fact, the underlying notion is to bring these street vendors and daily wage workers into mainstream society. For this reason, a credit score for the vendors at the time of availing loans will go a long way. Furthermore, a digital record of their socioeconomic status will enable them to easily access the Central Government schemes later. A mobile application namely PMSVANidhi se Samriddhi is also launched for the same.
- PM-SVANidhi offers various incentives to vendors in the form of:
- Interest subsidy at 7% per annum on regular repayment of loans
- Cashback up to Rs 120/-per annum on undertaking prescribed digital transaction
- Eligibility for enhanced next tranche of loans.
- To sum up, the scheme facilitates collateral-free working capital loans of up to Rs 10,000/- of one-year tenure.
All street vendors who work with a small capital base in urban areas as on before March 24 2020 in States/UTs are eligible. Moreover, candidates should have notified rules and scheme under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
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For this reason, the MoHUA also coordinated with the key stakeholders including Municipal Corporations, fssai, Zomato, Swiggy, and GST officials to ensure the wider reach of the initiative.