PM SVANIDHI - GOVERNANCE

News: Only 9.3% of loans under scheme for street vendors given to those from minority communities: Govt. data

 

What's in the news?

       The Ministry of Housing and Urban Affairs told the Rajya Sabha that a total of 42.7 lakh loans amounting to ₹5,152.37 crore had been disbursed to street vendors under the PM SVANidhi scheme out of which only 3.98 lakh or 9.3% were to hawkers from the minority communities.

 

PM SVANidhi:

       The PM SVANidhi is a micro-credit scheme which was launched by the government in 2020 to provide handholding support to street vendors to tide over pandemic-induced economic stress.

       PM SVANidhi stands for Prime Minister Street Vendor’s AtmaNirbhar Nidhi.

 

Nodal Ministry: Ministry of Housing and Urban Affairs

 

Beneficiaries:

       Street Vendors or hawkers in urban areas

       Street Vendors of peri-urban areas and rural areas (Those who were street vendors as on/before 24th March 2020).

 

Features:

       It facilitates collateral-free loans of ₹10,000, with subsequent loans of ₹20,000 and ₹50,000 with 7% interest subsidy.

       There is a provision of monthly cash-back incentive on digital payments through monthly cashback in the range of Rs. 50-100.

       It also incentivizes regular repayment of loans.