PM SVANIDHI (Syllabus: GS Paper 3 – Economy)

Context: A study that evaluated the impact of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), a small working capital loan scheme for street vendors, has found that the first tranche of `10,000 led to an additional annual income of `23,460 for each beneficiary.

Key Points of Study

• Commissioned by: Union Ministry of Housing and Urban Affairs
• Conducted by: Centre for Analytical Finance of the Indian School of Business (ISB)

oExecuted between January and June of the previous year

• Loan Disbursement Statistics: Data from the PM-SVANidhi portal indicates:

oMore than 60 lakh first-term loans and about 2.5 lakh third-term loans have been disbursed.

• Scope and Demographics of ISB Study: Encompassed 5,141 vendors across 100 urban local bodies in 22 states

o95% of surveyed individuals considered PM-SVANidhi loan their first-ever bank loan

o72% reported it as their initial business loan experience.

• Utilization of Loans: 94% of beneficiaries using the first loan of `10,000 allocated funds for "business investments"

oFor those availing the second loan, the percentage increased to 98%.

• Impact and Additional Income: The first loan resulted in an additional income of `1,955 per month

oTotaling `23,460 during the loan's one-year duration

oAligning with global estimates of marginal returns for small businesses.

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

• Launched: June 01, 2020
• Nodal Ministry: Ministry of Housing and Urban Affairs
• Objective: Offering cost-effective working capital loans to street vendors, enabling them to revive their livelihoods impacted by the Covid-19 lockdown.
• Lending Agencies: Microfinance Institutions, Non-Banking Financial Companies, Self Help Groups 

Eligible for the Loan

• Vendors with vending experience dating back to or before March 24, 2020, and possessing a vending certificate are eligible for the loan.
• The Street Vendors Act 2014 mandates Town Vending Committees, consisting of local authorities and area vendors, to issue vending certificates following a comprehensive survey of all vendors.