PM SVANidhi Scheme UPSC: History, Features, Objectives, Eligibility, Benefits, Target Beneficiaries & More

PM SVANidhi Scheme UPSC: PM SVANidhi scheme stands for PM Street Vendor's AtmaNirbhar Nidhi launched by Ministry of Housing and Urban Affairs on June 01, 2020. This scheme is launched to empower Street Vendors by not only extending loans but also for their holistic development and economic upliftment. The scheme also offers a collateral free working capital of Rs 10,000 for tenure of one year. 

PM SVANidhi Scheme UPSC

The PM SVANidhi scheme will cater approximately 50 lakh street vendors to help resume their businesses in the urban areas, including surrounding peri-urban/rural areas. The scheme will offer a interest subsidy at 7% per annum on regular repayment of loan and cashback upto INR1200/- per annum on undertaking prescribed digital transactions. Check the table below for the illustration of interest and cashback.

Also Check Other Schemes,

PM SVANidhi Eligibility Criteria

The Scheme was available to all street vendors engaged in vending in urban areas as on or before March 24, 2020. The eligible vendors were identified as per following criteria

• Street vendors in possession of Certificate of Vending/Identity Card issued by Urban Local Bodies (ULBs).
• Street Vendors, left out of the ULBled identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB/Town Vending Committee (TVC)
• The list of vendors, prepared by certain States/ UTs, for providing one-time assistance during the period of lockdown

PM SVANidhi Scheme: Who Can Lend?

The Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs) & SHG Banks established in some States/UTs e.g. Stree Nidhi etc. can lend the amount to identified street vendors. 

What is the Impact of PM SVANidihi Scheme?

The PM SVANidhi scheme has transformed the lives of millions of street vendors by:

Reviving Businesses: The scheme helped vendors to restart their operations and sustain livelihoods after the economic disruptions caused by the pandemic.

Promoting Digital Literacy: Various cashbacks encourage the adoption of digital payment systems has increased financial literacy and accountability among vendors.

Reducing Dependency on Informal Credit: The scheme has helped street vendors break free from the clutches of informal moneylenders who charge exorbitant interest rates.

Empowering Women Entrepreneurs: A significant percentage of the beneficiaries were women, leading to increased participation in economic activities.