On August 12, 2020, the number of applications received by the Government of India under PM-SVANidhi Scheme crossed 5 lakhs in 41 days of its launch. The scheme was launched to benefit the street vendors. PM SVANidhi is PM Street Vendor’s Atma Nirbhar Nidhi.
Under the scheme, the number of loans sanctioned has crossed 1 lakh. The Government aims to provide loans up to Rs 10,000 to the street vendors under the scheme. It was launched by Ministry of Housing and Urban Affairs under Atma Nirbhar Bharat Abhiyan. The scheme aims to facilitate loans to 50 lakh street vendors in urban, peri-urban and rural areas.
About the scheme
The scheme provides incentives in the form of interest subsidy at 7% per annum. The scheme also provides cash back up to Rs 1,200 per annum. The Micro Finance Institutions and Non-Banking Financial Companies are engaged as lending institutions under the scheme. This has been done to bring banks at door steps of the nano-entrepreneurs. These banking institutions are to operate in addition to private and public sector banks, scheduled commercial banks, cooperative banks, regional rural banks and Self-Help Group Banks.
The scheme brings relief to street vendors and has a response of more than 1.5 lakh vendors. The scheme was launched in June 2020. It was launched to help the street vendors so that they can resume their livelihoods due to COVID-19 lock down.
Key features of the scheme
- The scheme is to run till March 2022
- The Small Industries Development Bank of India (SIDBI) is the technical partner to implement the scheme.
- The scheme is to manage credit guarantee to lend institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises.
- The scheme is applicable to vendors, Thelewalas, Hawkers, Theliphadwalas who supply goods and services. The street vendors in the surrounding urban, peri-urban and rural areas are also included in the scheme.