PM SVANidhi stands for Prime Minister Street Vendor’s AtmaNirbhar Nidhi. This central sector scheme was launched in June 2020 to provide micro-credit facilities to street vendors whose livelihoods were adversely affected by the COVID-19 pandemic. The scheme is essential for UPSC 2023 preparation, covering both prelims and mains exams.
Key Facts about PM SVANidhi
- Full-Form: Prime Minister Street Vendor’s AtmaNirbhar Nidhi
- Launch Date: 1st June 2020
- Ministry: Ministry of Housing and Urban Affairs (MoHUA)
- Target Beneficiaries:
- Street vendors or hawkers in urban areas
- Street vendors in peri-urban and rural areas (active as of or before 24th March 2020)
- Mandatory Documents:
- Aadhar Card
- Voter Identity Card
- Scheme Tenure: June 2020 – March 2022
- Direct Link: PM SVANidhi Portal
Salient Features of PM SVANidhi
- Central Sector Scheme: Provides affordable working capital loans to street vendors affected by the COVID-19 pandemic.
- Loan Amount: Initial working capital loan of up to ₹10,000.
- Interest Subsidy: 7% interest subsidy for timely repayment.
- Digital Payment Incentives: Monthly cashback incentives for digital payments ranging from ₹50 to ₹100.
- Higher Loan Eligibility: Vendors can access higher loans on subsequent applications if they repay the first loan on time.
- No Collateral: Loans are provided without requiring collateral security.
Objectives of PM SVANidhi
- Affordable Loans: Provide vendors with affordable working capital to resume their livelihood activities post-lockdown.
- Incentivize Repayment: Encourage regular loan repayment through incentives like cashback and eligibility for higher loans.
- Promote Digitalization: Promote digital transactions by offering rewards for digital repayment.
Background of the Scheme
The COVID-19 pandemic and subsequent lockdowns significantly impacted the livelihoods of street vendors, who typically operate with minimal capital. The PM SVANidhi scheme aims to provide much-needed working capital to help them restart their businesses.
Lending Institutions under PM SVANidhi
- Scheduled Commercial Banks
- Regional Rural Banks
- Cooperative Banks
- Non-Banking Financial Companies (NBFCs)
- Micro-Finance Institutions (MFIs)
- Self Help Groups (SHG) Banks
Eligibility of States/UTs
The scheme is available to beneficiaries in States/UTs that have notified Rules and Schemes under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Beneficiaries from Meghalaya, which has its own State Street Vendors Act, are also eligible.
Implementation Partner
The Small Industries Development Bank of India (SIDBI) is the implementation partner for PM SVANidhi. SIDBI will leverage its network of lending institutions, including SCBs, RRBs, SFBs, Cooperative Banks, NBFCs, and MFIs, to implement the scheme effectively.
This scheme plays a crucial role in supporting the recovery of street vendors across the country, making it a significant topic for UPSC preparation.
