PM SVANidhi stands for Prime Minister Street Vendor’s AtmaNirbhar Nidhi. It is a central sector scheme launched in June 2020. It aims to provide micro-credit facilities to street vendors affected due to COVID-19 pandemic. It is one of the important government schemes for the UPSC 2023 preparation. Read about facts about PM SVANidhi for both prelims and mains exams.
Important Facts about PM SVANidhi for UPSC
|Full-Form of PM SVANidhi||Prime Minister Street Vendor’s Atmanirbhar Nidhi|
|Launch Date||1st June 2020|
|Under which government ministry?||Ministry of Housing and Urban Affairs (MoHUA)|
(Those street vendors as on/before 24th March 2020)
|Mandatory Documents to Access Benefits||
|Tenure of the scheme||June 2020 – March 2022|
|Direct Link to avail the benefits under the PM SVANidhi||https://pmsvanidhi.mohua.gov.in/|
|Aspirants can learn about other important government schemes from the links below:|
Salient Features of PM SVANidhi
- It is a central sector scheme
- It will provide affordable working capital loans to street vendors who are left affected by the novel coronavirus pandemic.
- It will be implemented till March 2022.
- Vendors will be provided with an initial working capital of up to Rs. 10000
- A vendor will get an interest subsidy at 7 per cent at early or timely repayment of loans.
- There is a provision of monthly cash-back incentive on digital payments.
- Monthly cashback in the range of Rs. 50-100.
- A vendor has the high probability to be eligible for a higher loan if he/she repays the first loan on time.
- A vendor does not have to provide any collateral security to access the loan.
Objectives of PM SVANidhi
- To give vendors access to affordable working capital loans which can help them to resume their livelihood activities post-countrywide lockdown (due to the pandemic.)
- To incentivize regular repayment of loans by provisions like cash-back, higher loans on subsequent demands etc.
- To promote digitalization by rewarding vendors who opt for digital repayments of loans.
Background of the Scheme
- The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors.
- They usually work with a small capital base, which they might have consumed during the lockdown.
- Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.
Lending Institutions under PM SVANidhi
- Scheduled Commercial Banks
- Regional Rural Banks
- Cooperative Banks
- Non-Banking Financial Companies
- Micro-Finance Institutions
- Self Help Groups (SHG) Banks
Eligibility of States/UTs
- The Scheme is available for beneficiaries belonging to only those States/UTs which have notified Rules and Scheme under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
- Beneficiaries from Meghalaya, which has its own State Street Vendors Act, may, however, participate.
- Small Industries Development Bank of India (SIDBI) will be the implementation partner of the Ministry of Housing and Urban Affairs for scheme administration.
- SIDBI will leverage the network of lending Institutions including the SCBs, RRBs, SFBs, Cooperative Banks, NBFCs & MFIs for scheme implementation.
PM SVANidhi:- Download PDF Here
|Current Affairs||Static GK|
|IAS Exam||UPSC Mains GS 2 Strategy|
|Micro Finance in India||Self Help Groups (SHGs)|
|Governance Questions of UPSC Mains GS 2||Difference Between Articles|