The Minister for Housing and Urban Affairs, Hardeep Singh Puri, recently praised the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme on its momentous completion of three years. The scheme, launched in June 2020, aimed to empower street vendors by restoring self-employment, self-sustenance, and self-confidence. Over the years, PM SVANidhi has emerged as one of the most beneficial and rapidly growing micro-credit schemes in India, fostering financial inclusion, digital literacy, and offering dignity and stability to street vendors.
PM SVANidhi Scheme: Empowering Street Vendors with Affordable Micro-Credit
The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme is a special micro-credit facility aimed at providing affordable loans to street vendors in India. Launched with the objective of empowering street vendors and promoting their self-sufficiency, the scheme offers loans of up to ₹10,000 to over 50 lakh street vendors who had operational businesses on or before March 24th. Implemented in partnership with the Small Industries Development Bank of India (SIDBI), the scheme aims to provide financial support to street vendors and facilitate their growth and development.
Loans Under the Scheme
Under the PM SVANidhi Scheme, street vendors can avail working capital loans of up to ₹10,000. These loans are repayable in monthly installments over a period of one year. The scheme provides street vendors with access to much-needed credit to expand their businesses, purchase inventory, and meet other operational requirements.
PM SVANidhi offers working capital loans in three installments to street vendors, providing them with easy access to credit and linkages to social security schemes. In just three years, the scheme has successfully provided microcredit to over 3.6 million street vendors across the country. As of June 30, 2023, more than 4.64 million loans have been disbursed, amounting to a cumulative sum of Rs. 5,795 crore. This remarkable achievement showcases the significant impact of the scheme in supporting the livelihoods of street vendors.
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Implementation Agency
The Ministry of Housing and Urban Affairs (MoHUA) has been responsible for the implementation and management of the PM SVANidhi Scheme. Through its dedicated efforts, the ministry has ensured the efficient rollout of the scheme and facilitated the seamless distribution of loans to street vendors nationwide.
The Small Industries Development Bank of India (SIDBI) serves as the technical partner for the implementation of the scheme.
Interest Subsidy and Timely Repayment
One of the key features of the PM SVANidhi Scheme is the provision of an interest subsidy to beneficiaries who make timely or early repayments. An interest subsidy of 7% per annum is credited to the bank accounts of beneficiaries through Direct Benefit Transfer (DBT) on a six-month basis.
Eligibility and Target Beneficiaries
The scheme is designed to benefit street vendors who have been operating as on or before March 24, 2020. The eligibility criteria include age between 18 and 60 years, possession of a vending certificate, and a specified vending zone. By targeting this vulnerable section of society, the scheme aims to uplift their economic condition and provide them with opportunities for growth and self-reliance.
Scheme Benefits
PM SVANidhi has brought about a wave of positive change by offering several benefits to street vendors. The scheme has not only provided them with working capital loans but has also focused on digital literacy and financial inclusion. The training provided under the scheme has empowered street vendors to engage in digital transactions, enabling them to gain social acceptance and dignity. Furthermore, the scheme has played a crucial role in helping COVID-19-affected street vendors resume their livelihoods, thereby providing them with stability during challenging times.
Celebrating Achievements and Initiatives
To mark the successful completion of three years, the Ministry of Housing and Urban Affairs organized an event at Vigyan Bhawan in New Delhi. During the event, a booklet highlighting the prime achievements and initiatives implemented under the PM SVANidhi scheme was released. This comprehensive document showcases the transformative impact of the scheme on the lives of street vendors and their families across the country.
Additionally, a mobile app called PM SVANidhi was introduced, aiming to simplify the loan application process and provide comprehensive information about the scheme. Furthermore, a special feature was launched on the PM SVANidhi portal, in collaboration with the Ministry of MSME, enabling street vendors to register under the ‘Udyam’ scheme and obtain an ‘Udyam Assist’ certificate, promoting their businesses.
Recognizing Excellence
The event also acknowledged the outstanding performance of states and lending institutions that have made significant contributions to the success of the PM SVANidhi Scheme. These awards recognize the efforts made by various stakeholders, including Central Ministries, State Governments, Urban Local Bodies, Lending Institutions, and partners, in ensuring the scheme’s effectiveness and impact.
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