PM SVANidhi Scheme : New Target
The Union Housing and Urban Affairs Ministry recently set a new target for its PM SVANidhi scheme for street vendors
- PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme was launched by the Ministry of Housing and Urban Affairs on June 01, 2020.
- Purpose is to provide affordable Working Capital loans to street vendors to resume their livelihoods that have been adversely affected due to the Covid-19 lockdown.
- It is a micro-credit facility that provides street vendors with a collateral-free loan of Rs 10,000 with low rates of interest (below 12%) for a period of one year, aiding the vendors in getting back on their feet financially.
- The duration of the scheme initially was until March 2022. It has been extended till December 2024, with a focus on enhanced collateral-free affordable loan corpus, increased adoption of digital transactions and holistic socio-economic development of the Street Vendors and their families.
- All vendors who have been vending from or before (March 24, 2020) and with a certificate of vending can avail the loan.
- As per the Street Vendors Act 2014, the Town Vending Committees(which comprises the local authorities and vendors from an area) issue a certificate of vending after a survey has been conducted of all the vendors.
- Vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
- On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
- There will be no penalty on early repayment of loan.
- The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.