A Scheme called PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) has been started by the Ministry of Housing and Urban Affairs. It is a unique Micro-Credit facilities program designed to give street vendors accessible financing. In the wake of the COVID-19 crisis, the program will allow street sellers to get back to work and support their families.
Who will get the benefit of the PM SVANidhi Scheme?
More than 50 lakh people, including traders, hawkers, and others who sell fresh produce, ready-to-eat food on the street, etc. will get direct benefit from the PM SVANidhi. The scheme also offers benefits to service providers like laundromats, shoemakers, pan shops, and barbershops.
The Scheme will be available for only those states and Union Territories that have announced the regulations and program for the 2014 Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act’s beneficiaries.
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The program is open to street vendors who were operating in metropolitan areas on or before March 24, 2020. The following criteria will be used to choose eligible vendors:
- Possession of an Identity Card or Certificate issued by an urban local body (ULBs)
- Identifying information was provided in the survey but no identity card or certificate of vending was present.
- 1 Possession of a letter of recommendation from a town vending committee or urban local body (ULB) (TVC)
Some of the Highlights of Features PM Street Vendor’s AtmaNirbhar Nidhi
- The vendors are eligible for a working capital loan of up to Rs. 10,000 with a term of 1 year and monthly installment repayment.
- Upon timely or early loan repayment, the credit limit will be increased and a 7% annual interest subsidy will be credited through Direct Benefit Transfer on a quarterly basis.
- The program offers monthly cashback up to Rs. 100 as an incentive for street sellers to conduct digital transactions.
- Cities have been chosen for the first phase, and loan disbursement is anticipated to start in July 2020.
Technology Involved in (PM SVANidhi) Scheme
- SIDBI has created an integrated PM SVANidhi portal to administer the plan with a complete solution,
- The udyami Mitra portal of the SIDBI for credit management and the Paisa Portal of the MoHUA to automatically administer interest subsidies will be integrated into the portal or mobile app.
- Small Industries Development Bank of India is a credit lending and implementation organization.
To register for the scheme, click here.