PM SVANIDHI (Syllabus: GS Paper 2 - Govt Schemes)

News-CRUX-10     30th December 2023        

Context: Recently, the Minister of Housing & Urban Affairs and Petroleum & Natural Gas inaugurated the National Street Food Festival 2023, emphasizing the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme in empowering street vendors.

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.

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