PM SVANidhi Yojana

Street vendors, an important part of supply chain, are constituent of the informal economy. They play significant role in ensuring the availability of goods and service by door to door delivery to the consumers. The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base and might have consumed the same during the lockdown. The Street Vendors AtmaNirbhar Nidhi Yojana was designed recognising the urgent need to provide credit for working capital to street vendors to resume their business.

Objective of PM SVANidhi Yojana

The micro-credit scheme is a Central Sector Scheme i.e. fully funded by Ministry of Housing and Urban Affairs with the following objectives:

To facilitate working capital loan up to 10,000.
To incentivize regular repayment.
To reward digital transactions.

Features

Scheme is aimed at benefiting over 50 lakh vendors who had their businesses operational on or before March 24, 2020 and scheme is valid till March 2022.
The loans are meant to help kick-start activity for vendors who have been left without any income since the lockdown was implemented on March 25.
Urban street vendors will be eligible to avail a Working Capital (WC) loan of up to 10,000 repayable in monthly instalments with in a year.
The vendors, availing loan under the scheme, are eligible to get an interest subsidy @ 7%.
No collateral will be taken by the lending institutions for the loan.
The Scheme has a provision of Graded Guarantee Cover for the loans sanctioned.
The scheme will incentivize digital transactions by vendors through cash back facility.
Help integration of the street vendors to the formal economy.
Open up new opportunities to climb up the economic ladder.

PM SVANidhi Yojana