PM SVANidhi Scheme for Street Vendors

September 14, 2020
PM SVANidhi scheme

The Ministry of Housing and Urban Affairs on has launched a micro-credit scheme for street vendors namely PM SVANidhi scheme. The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi Scheme is aimed at benefiting over 50 lakh vendors who had their businesses operational on or before March 24. It is a Central Sector Scheme to facilitate street vendors to access affordable working capital loan for resuming their livelihoods activities, after easing of lockdown.

Objectives of PM SVANidhi

  • To facilitate working capital loan up to Rs 10,000 at subsidized rate of interest
  • To incentivize regular repayment of loan
  • To reward digital transactions.

The scheme will help formalize the street vendors with above objectives and will open up new opportunities to this sector to move up the economic ladder

Features of PM SVANidhi

  • Initial working capital of up to Rs 10,000/- for period of 1 year
  • Interest subsidy on timely/ early repayment @ 7%. On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through direct benefit transfer on a six monthly basis.
  • Monthly cash-back incentive on digital transactions
  • Higher loan eligibility on timely repayment of the first loan
  • The scheme is valid till March 2022
  • Over 50 lakh people, including vendors, hawkers, thelewalas, etc. are likely to get benefitted from the scheme.
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Implementing Agency of PM SVANidhi

The Ministry of Housing and Urban Affairs signed MoU with Small Industries Development Bank of India (SIDBI) in order to engage SIDBI as the Implementation Agency for the scheme. The scheme to be administered by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Financial Institutions Covered

Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs) & SHG Banks established in some States/UTs

In News

The government has launched a mobile app for urban local bodies to source loan applications from street vendors under the PM SVANidhi scheme

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