{"id":39565,"date":"2024-02-12T04:53:10","date_gmt":"2024-02-11T23:23:10","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=39565"},"modified":"2025-04-24T17:08:29","modified_gmt":"2025-04-24T11:38:29","slug":"pm-svanidhi","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/pm-svanidhi\/","title":{"rendered":"PM-SVANidhi boosted annual income of street vendors"},"content":{"rendered":"<h2>What\u2019s in today\u2019s article?<\/h2>\n<ul>\n<li>Why in news?<\/li>\n<li>What is the PM SVANidhi Scheme?<\/li>\n<li>News Summary: The study<\/li>\n<\/ul>\n<h2>Why in news?<\/h2>\n<ul>\n<li>A study looked at how the PM Street Vendor\u2019s AtmaNirbhar Nidhi (PM SVANidhi), a loan scheme for street vendors, affected their income.<\/li>\n<li>It found that the first loan of \u20b910,000 increased the yearly income of each beneficiary by \u20b923,460.<\/li>\n<\/ul>\n<h2>The PM SVANidhi Scheme<\/h2>\n<ul>\n<li>About\n<ul>\n<li>It was launched in 2020 amid the pandemic by the Ministry of Housing and Urban Affairs (MoHUA), Government of India.<\/li>\n<li>It is a micro-credit facility that provides street vendors a collateral-free loan of Rs 10,000 with low rates of interest (below 12%) for a period of one year, aiding the vendors at getting back on their feet financially.<\/li>\n<li>In the long term, it aims at &#8211;\n<ul>\n<li>Establishing a credit score for the vendors<\/li>\n<li>Creating a digital record of their socio-economic status<\/li>\n<\/ul>\n<\/li>\n<li>This will enable street vendors to avail the Central government schemes later, formalise the informal sector of the economy and provide them safety nets and a means of availing loans in the future.<\/li>\n<\/ul>\n<\/li>\n<li>Need for the Scheme\n<ul>\n<li>Many vendors belong to the informal economy, and often borrow from private lenders which charge them exorbitant rates of interest.<\/li>\n<li>The COVID-19 pandemic and the nationwide lockdown left daily wage workers and street vendors out of work.<\/li>\n<\/ul>\n<\/li>\n<li>Eligibility\n<ul>\n<li>All vendors who have been vending from or before (March 24, 2020) and with a certificate of vending can avail the loan.<\/li>\n<li>As per the Street Vendors Act 2014, the Town Vending Committees (which comprises the local authorities and vendors from an area) issue a certificate of vending after a survey has been conducted of all the vendors.<\/li>\n<\/ul>\n<\/li>\n<li>Performance of the scheme\n<ul>\n<li>Data on the PM-SVANidhi portal (February 10, 2024) showed that 60.65 lakh first-term loans, 16.95 lakh second-term loans and 2.43 lakh third-term loans have been disbursed so far under the scheme.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>News Summary: The study<\/h2>\n<ul>\n<li>About\n<ul>\n<li>The study was commissioned by the Union Ministry of Housing and Urban Affairs.<\/li>\n<li>It was carried out between January and June 2023 by the Centre for Analytical Finance of the Indian School of Business (ISB).<\/li>\n<li>The report will be used by the <u>Ministry for its own assessment of PM SVANidhi and is not likely to be made public<\/u><\/li>\n<\/ul>\n<\/li>\n<li>Findings\n<ul>\n<li>94% of those beneficiaries who had availed the first loan of Rs 10,000 said they used it to make business investments.\n<ul>\n<li>It was 98% in case of those who had availed the second loan.<\/li>\n<\/ul>\n<\/li>\n<li>The first loan resulted in an additional income of 1,955 per month, or 23,460 in total during the loan\u2019s one-year duration.<\/li>\n<li>The study found 13.9% of all the loans disbursed had been classified as non-performing assets (NPAs), meaning no payments had been made for three months and more.<\/li>\n<li>The study discovered that the debt-to-income (DTI) ratio of the beneficiaries was lower than what small businesses typically have.\n<ul>\n<li>This indicates that the vendors are considered highly creditworthy.<\/li>\n<\/ul>\n<\/li>\n<li>Additionally, the study revealed that even after the PM SVANidhi program started, <u>there was not much improvement in street vendors accessing formal credit from other sources<\/u>.\n<ul>\n<li>Only 9% of the beneficiaries had loans from other financial institutions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1)\u00a0What is debt-to-income (DTI) ratio?<\/h3>\n<p>A debt-to-income (DTI) ratio is a percentage that compares your total debt payments to your gross income. Lenders use this ratio to determine your creditworthiness and ability to repay loans.<\/p>\n<h3>Q2)\u00a0What is micro-credit?<\/h3>\n<p>Microcredit is a type of microfinance that involves giving small loans to individuals or groups who lack access to formal banking systems. The loans are typically short-term, with a repayment period of 1-2 years.<\/p>\n<hr \/>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/indianexpress.com\/article\/india\/pm-svanidhi-boosted-annual-income-of-street-vendors-by-23000-study-9156475\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>PM-SVANidhi boosted annual income of street vendors by Rs 23,000: Study<\/u><\/a><u> | <\/u><a href=\"https:\/\/pmsvanidhi.mohua.gov.in\/Home\/Schemes\" target=\"_blank\" rel=\"nofollow noopener\"><u>Ministry of Housing and Urban Affairs<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PM SVANidhi Scheme is a micro-credit facility that provides street vendors a collateral-free loan.<\/p>\n","protected":false},"author":5,"featured_media":39566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-39565","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/39565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=39565"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/39565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/39566"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=39565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=39565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=39565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}