Tuesday, September 28, 2021

22.7 lakh loans worth Rs 2,243 crore disbursed to street vendors under PM SVANidhi Scheme

The Central Government on Thursday, July 29, 2021, said that 22.7 lakh loans worth Rs 2,243 crore have been disbursed to street vendors under the Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM-SVANidhi) scheme.

Union Housing and Urban Affairs Minister Kaushal Kishor said that “the ministry is implementing the PM SVANidhi scheme since June 1, 2020, to facilitate the working capital loan of up to Rs 10,000 of 1-year tenure to street vendors, vending in urban areas, to resume their businesses which have been adversely affected by the pandemic.”

“43.1 lakh loan applications have been received as of July 26, 2021, out of which 25.2 lakh loans have been sanctioned and 22.7 lakh loans worth Rs 2,243 crore have been disbursed,” Union Minister Kaushal Kishor said. In addition, the socio-economic profiling of 5.1 lakh beneficiaries along with their family members have been completed and the benefits of 1.5 lakh schemes have been extended.

On prepayment or repayment, vendors are eligible for working capital loans up to Rs 20,000 and Rs 50,000 in Phase II and III respectively, the Minister said. The ‘SVANidhi Se Samridhi’ initiative is designed to create a safety net for the families of the beneficiaries by linking them to the existing socio-economic welfare schemes of the Central Government. It was launched for 125 select cities in January 2021.

Street vendors engaged in selling in urban areas on or before March 24, 2020, are eligible for benefits under the PM SVANidhi scheme. 

What is SVANidhi scheme?

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, launched in June 2020 amid the pandemic, is a micro-credit facility that provides street vendors with a collateral-free loan of Rs 10,000 at a low-interest rate for a period of one year.

Why was SVANidhi scheme rolled out?

The COVID-19 pandemic and the nationwide lockdown put daily wage workers and street vendors out of work. The objective of the scheme is to assist sellers to get back on their feet financially. In the long term, it aims to establish a credit score for vendors as well as create a digital record of their socio-economic status, so that they can later take advantage of Central Government schemes. The scheme also seeks to formalize the informal sector of the economy and provide them with a safety net and a means to obtain credit in the future.

Eligibility of vendors under SVANidhi scheme:

  1. Street vendors having Vending Certificates/Identity Cards issued by Urban Local Bodies (ULBs).
  2. Vendors who have been identified in the survey but have not been issued a Vending Certificate/Identity Card.
  3. The vendors of nearby development/peri-urban/rural areas vending in the geographical limits of the ULBs and have been issued a Letter of Recommendation (LoR) to that effect by the ULB / TVC.
  4. Street vendors left out from the ULB-led identification survey or those who have started vending after completion of the survey and have been issued a Letter of Recommendation (LOR) to this effect by the ULB/Town Vending Committee (TVC).
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