PM SVANIDHI (Syllabus: GS Paper 2 – Government Schemes)

Context: The Prime Minister of India recently shared an in-depth research report by the State Bank of India that provides a clear picture of the transformative impact of PM SVANidhi.

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.

oIt is a special micro-credit facility plan to provide affordable loans of up to 10,000 to more than 50 lakh street vendors, who had their businesses operational on or before 24 March.

• 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.

Benefits of Scheme

• Vendors can access a working capital loan of up to Rs. 10,000, with repayment in monthly installments over one year.
• Timely or early loan repayments will result in a 7% annual interest subsidy deposited into beneficiaries' bank accounts quarterly via Direct Benefit Transfer.
• Early repayment of the loan will not incur any penalties.