The PM Street Vendors Atma Nirbhar Nidhi (PM SVANidhi) was launched by the Ministry of Housing and Urban Affairs on June 01, 2020, to provide affordable working capital loans to Street vendors to resume their livelihood that has been adversely affected due to covid-19 lockdown.

The PM SVANidhi is important from the perspective of the UPSC IAS examination. It falls under the General Studies paper 2 and also Economy GS 3 Employment and particularly falls under the Government schemes. In this article, we shall discuss in detail the Prime Minister Street Vendor Atma Nirbhar Nidhi, its objectives, background, eligibility, and its relevance in today’s scenario.

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PM SVANidhi – PM Street Vendor’s Atma Nirbhar Nidhi

PM SVANidhi is a central sector scheme launched in June 2020. It is a special micro-credit facility plan to provide affordable loans of up to Rs 10,000 to more than 50 lakh street vendors who had their businesses operational on or before 24 March.

The scheme would benefit vendors, hawkers, and people involved in goods and services related to textiles, apparel, artisan products, barbers shops, laundry services, etc., in different areas. The duration of the scheme is until March 2022. Small Industries Development Bank Of India (SIDBI) is the technical partner for the implementation of this scheme.

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Background Of The PM SVANidhi Scheme

The background of the scheme is as under;

• The covid -19 pandemic has adversely impacted the livelihoods of street vendors.
• The vendors usually work with a small capital base, which demite have consumed during the lockdown.
• The credit for working capital to the street vendors under the PM SVANidhi scheme will be helpful in resuming their livelihoods.

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Objectives Of PM SVANidhi Scheme

The objectives of PM SVANidhi are as follows:

• PM SVANidhi gives Vendors access to affordable working capital loans, which helps them to resume their livelihood activities post-countrywide lockdown.
• It aims to promote digitalization by ensuring a mechanism of rewarding the vendors who opt for digital repayment of loans.
• It encourages regular repayment of loans by providing cash-back, higher loans on subsequent demands.

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Salient Features of PM SVANidhi Scheme

The features of this scheme are as follows:

• PM SVANidhi is a central sector scheme.
• This scheme will provide affordable working capital loans to street vendors who are left affected by the covid-19 pandemic.
• It will be implemented till March 2022.
• Vendors will be provided with an initial working capital of up to Rs.10000.
• A vendor does not have to provide any collateral security to access the loan.
• A vendor will get an interest subsidy of 7% at early or timely repayment of loans.
• A vendor has a high probability of being eligible for a higher loan if he/she repays the first loan on time.
• Monthly cashback in the range of Rs.50-Rs.100 is an incentive for digital payments.

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Eligibility Under The PM SVANidhi Scheme

Here are the eligibility criteria for the Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) scheme:

• The applicant must be an Indian citizen.
• The applicant must be between 18 and 60 years of age.
• The applicant must have a valid proof of residence, such as a voter ID card, Aadhaar card, or ration card.
• The applicant must have valid proof of vending activity, such as a certificate from the local authorities or a trade license.
• The applicant must have a bank account in their name.
• The applicant's annual income must be less than Rs. 1.2 lakh.

Here are some additional eligibility criteria for the PM SVANidhi scheme:

• The applicant must be a street vendor who is engaged in the sale of goods or services.
• The applicant must not have availed of any other government loan or subsidy scheme for self-employment.
• The applicant must be willing to repay the loan in installments.

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Benefits of The PM SVANidhi Scheme

The intended benefits of the scheme are as follows:

• Vendors can get a working capital loan of up to rupees 10000, which can be repaired in monthly installments over the time period of 1 year.
• This scheme promotes digital transactions through cashback in sentences up to a number of Rupees 100 per month.
• The vendors can get the facility of escalation of the credit limit on timely/early repayment of loans.
• On timely/early repayment of the loan, an internet subsidy at the rate of 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
• No penalty will be charged on early repayment of the loan.

Implementing Agency of PM SVANidhi Scheme

The implementing partner is given below:

• The Ministry of Housing and Urban Affairs signed an MoU with the Small Industry Development Bank of India (SIDBI) in order to engage as the implementation agency for the PM SVANidhi scheme.
• SIDBI will manage the credit guarantee to the lending institution through the credit guarantee fund trust for micro and small Enterprises (CGTMSE).

Lending Institutions Under PM SVANidhi Scheme

The lending institutions under the PM SVANidhi scheme are given below:

• Scheduled Commercial Banks
• Regional Rural Banks
• Cooperative Banks
• Non-banking Financial Companies
• Micro-Finance institutions
• Self-Help Groups(SHG) Banks

Loans Under The PM SVANidhi Scheme

The loans under the scheme of the PM SVANidhi are given below:

• Under the scheme, vendors can get working capital loans up to Rupees.10,000, which can be repaid in monthly installments within 1 year.
• No penalty will be charged on early repayment of the loan.
• On timely repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank account of the vendors through Direct Benefit Transfer on 6 monthly basis.

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Target Beneficiaries of PM SVANidhi Scheme

• The Street Vendors Self-Reliance Fund Scheme targets to benefit over 50 lakh street vendors.
• A vendor is a person engaged in vending articles, goods, food items or offering services from temporary structures or moving from place to place.
• Goods include vegetables, fruits, ready-to-eat food, tea, apparel, artisan products. Services include barbershops, cobblers, pan shops, laundry.
• To avail the loan, a vendor must possess a Certificate of Vending or ID card from Urban Local Bodies (ULBs).
• Vendors identified but without card can get a Letter of Recommendation (LoR) from ULB/TVC with documents like past bank loan, vendor association membership, or local enquiry application.
• KYC document needed is Aadhaar Card, Voter ID, Driving License, MNREGA Card or PAN Card.

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We hope all your doubts regarding the PM Street Vendors Atma Nirbhar Nidhi (PM SVANidhi) are addressed after going through this article. Testbook provides comprehensive notes for different competitive examinations. It has always assured the quality of its product, like content pages, live tests, Gk and current affairs, mocks, and so on.Ace your UPSC preparation with the Testbook App!