PM SVANidhi - GOVERNMENT SCHEME

News: Govt sets fresh target of 63 lakh loans for street vendors by year-end

 

What's in the news?

       The Union Housing and Urban Affairs Ministry has set a new target for its loan scheme for street vendors — 63 lakh new loans in less than six months till December this year — after having dispersed 50 lakh loans to 39 lakh beneficiaries in the three years since the scheme’s launch in 2020.

 

Key takeaways:

       The Pradhan Mantri Street Vendors Atmanirbhar Nidhi (PM SVANidhi) was launched during the Covid-19 pandemic and the resultant lockdown to provide street vendors with small working capital loans of Rs 10,000 each.

       During its launch, the target was set at 50 lakh beneficiaries.

 

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 incentivises regular repayment of loans.