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PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi):


Context:

Foodtech major Swiggy has signed an MoU with the Ministry of Housing & Urban Affairs or MoHUA to bring India’s street food vendors on to its online platform.

  • The initiative under PM Street Vendor’s AtmaNirbhar Nidhi or PM SVANidhi Scheme will help these vendors grow their business which was severely hit and are still struggling due to the Covid-19 pandemic.

Overview of the scheme:

  • It is a special micro-credit facility plan to provide affordable loan of up to ₹10,000 to more than 50 lakh street vendors, who had their businesses operational on or before 24 March 2020.
  • The scheme is valid until March 2022.
  • Small Industries Development Bank of India is the technical partner for implementation of this scheme.
  • It will manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises.

Loans under the scheme:

  • Under the scheme, vendors can avail working capital loan of up to ₹10,000, which is repayable in monthly instalments within one year.
  • On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer (DBT) on six-months basis.
  • There will be no penalty on early repayment of loan.

Eligibility:

The scheme is applicable to vendors, hawkers, thelewalas, rehriwalas, theliphadwalas in different areas/contexts who supply goods and services. Street vendors belonging to the surrounding peri-urban/rural areas are also included.

InstaLinks:

Prelims Link:

  1. Validity of the scheme.
  2. Who implements?
  3. Eligibility under the scheme?
  4. Rate of interest?
  5. What is SIDBI?

Mains Link:

Discuss the significance of PM SVANIDHI scheme.

Sources: PIB.