PM SVANidhi

Context: Union Minister of Housing & Urban Affairs inaugurated India’s first ‘Zero Waste Street Food Festival’ in Delhi ,highlighted the role of Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme in empowerment of street vendors.

Key Features of PM-SVANidhi: - The PM-SVANidhi is a Central Sector Scheme, fully funded by the Ministry of Housing and Urban Affairs, aiming to provide working capital loans, incentivize regular repayment, and reward digital transactions for street vendors.

• It introduces a 3rd term loan of up to ₹50,000, in addition to the 1st and 2nd loans of ₹10,000 and ₹20,000, respectively.
• The loans are provided without the need for collateral.
• Lending agencies include Microfinance Institutions, Non-Banking Financial Companies, and Self-Help Groups, leveraging their ground-level presence
• Eligibility is based on states and union territories that have notified rules and schemes under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Meghalaya, with its own State Street Vendors Act, is also eligible
• The scheme is open to all street vendors engaged in urban vending, extending the benefit to those active on or before March 24, 2020.
• Early repayment of loans brings benefits such as interest subsidy at 7% per annum through direct benefit transfer, credit limit extension, and no penalty on early repayment.
• The scheme encourages digital transactions by providing monthly cashback to street vendors.
• A digital platform with a web portal and mobile app is being developed for effective delivery and transparency, integrating with the UdyamiMitra portal of SIDBI and the PAiSA portal of MoHUA for credit management and interest subsidy administration.
• PM-SVANidhi aims to integrate vendors into the formal financial system and includes capacity building and financial literacy programs, along with Information, Education, and Communication (IEC) activities.
• Urban Local Bodies (ULBs) will play a crucial role in implementing the scheme, targeting beneficiaries efficiently.