PM SVANidhi Yojana:
The Prime Minister recently lauded the success of PM SVANidhi Yojana, saying that the scheme is empowering street vendors in the country.
- It is a central-sector micro-credit scheme launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA) for providing affordable working capital loans to street vendors affected by the Covid-19
- The scheme aims to provide financial support to street vendors to resume their livelihoods and help them become self-reliant.
- Implementation Agency: Small Industries Development Bank of India (SIDBI)
- Vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly installments in the tenure of one year.
- On timely/early repayment of the loan, an interest subsidy at 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 the loan.
- The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
- The vendors can avail the facility of escalation of the credit limit on timely/early repayment of loan.
- The loan amount can be used for any purpose related to the street vending business, such as buying raw materials, paying rent, or purchasing equipment.
- The loan repayment period is one year.
- Street vendors in possession of Certificate of Vending /Identity Card issued by Urban Local Bodies (ULBs).
- The vendors, who have been identified in the survey of street vendors but have not been issued Certificate of Vending/Identity Card.
- Street Vendors left out of the ULB-led identification survey or who have started vending after completion of the survey and have been issued a Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC).
- The vendors of surrounding development/ peri-urban/rural areas vending in the geographical limits of the ULBs, who have been issued a Letter of Recommendation (LoR) to that effect by the ULB /TVC.
