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

About PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme

• It was launched by the Ministry of Housing and Urban Affairs on June 01, 2020.
• Purpose: To provide affordable Working Capital loans to street vendors to resume their livelihoods that have been adversely affected due to the Covid-19 lockdown.
• It is a micro-credit facility that provides street vendors with a collateral-free loan of Rs 10,000 with low rates of interest (below 12%) for a period of one year, aiding the vendors in getting back on their feet financially.
• The duration of the scheme initially was until March 2022. It has been extended till December 2024, with a focus on enhanced collateral-free affordable loan corpus, increased adoption of digital transactions and holistic socio-economic development of the Street Vendors and their families. 
• Who is Eligible for the Loan?
  • All vendors who have been vending from or before (March 24, 2020) and with a certificate of vending can avail the loan.
  • 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.

PM SVANidhi Scheme Benefits

• Vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
• On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
• here will be no penalty on early repayment of loan.
• The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
• The vendors can avail the facility of escalation of the credit limit on timely/ early repayment of loan.
• Implementation agency: Small Industries Development Bank of India (SIDBI)

Q1) What is the Small Industries Development Bank of India (SIDBI)? 

SIDBI was established under the special Act of the Parliament 1988 which became operative from April 2, 1990. SIDBI is the Primary Financial Institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector. Besides focussing on the development of the Micro, Small and Medium Enterprise sector, SIDBI also promotes cleaner production and energy efficiency.SIDBI helps MSMEs in acquiring the funds they require to grow, market, develop and commercialize their technologies and innovative products.

Source: Govt sets fresh target of 63 lakh loans for street vendors by year-end