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.
