PM-SVANIDHI (Syllabus: GS Paper 2 – Govt Scheme)

Context: Recently, the Prime Minister of India laid the foundation stone for two new Delhi Metro corridors and distributed cheques to five beneficiaries of the PM-SVANidhi scheme.

PM-SVANidhi

• About: It is a central sector scheme to provide to provide a small working capital loan a scheme for street vendors.
• Launched: June 01, 2020
• Nodal Ministry: Ministry of Housing and Urban Affairs.
• Implementing Agency: Small Industries Development Bank of India (SIDBI)
• Objective:

oTo facilitate and provide working capital loans up to Rs.10,000 at a subsidised rate of interest, 

oTo incentivise regular repayment of the loan, and 

oTo reward digital transactions.

oIntroduction of 3rd term loan of up to ₹50,000 in addition to 1st & 2nd loans of ₹10,000 and ₹20,000 respectively.

• 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: It mandates Town Vending Committees, consisting of local authorities and area vendors, to issue vending certificates following a comprehensive survey of all vendors.
• Funding: It is a Central Sector Scheme.
• A recent study: SBI has hailed the performance of the scheme stating that 43% beneficiaries are women street vendors. Moreover 44% of the PM SVANidhi beneficiaries belong to OBC category, while Scheduled Castes and Scheduled Tribes account for 22%.