Over 1 Lakh loans sanctioned of street vendors under PM SVANidhi scheme

New Delhi, Aug 13: Under the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), the number of loan sanctions ave crossed the mark of 1 lakh in the span of just 41 days after the commencement of the lending process on July 2, the government stated. The number of applications received under the same scheme has been over 5 lakh. The Union Housing and Urban Affairs Ministry said the scheme has generated considerable enthusiasm among the street vendors.

 

 

The scheme is mainly made for the street vendors, who have been looking for access to affordable working capital credit for re-starting their businesses post COVID-19 lockdown. The micro-credit support under the scheme is expected to provide not only major relief to such vendors but also help them climb the economic ladder. Use of an integrated IT Platform (pmsvanidhi.mohua.org.in), Web Portal and Mobile App has enabled the Scheme to extend its reach and benefits to this segment of society with the objective of minimum government and maximum governance.

 

The scheme launched by the Ministry of Housing & Urban Affairs under the ambit of ‘AtmaNirbhar Bharat Abhiyan’, aims at facilitating collateral-free working capital loans up to Rs 10,000 of 1-year tenure, to about 50 lakh street vendors. It includes the urban areas, including those from the surrounding peri-urban/ rural areas, to resume their businesses post COVID-19 lockdown.

 

"Incentives in the form of interest subsidy @ 7% per annum on regular repayment of the loan, cashback up to Rs 1,200 per annum on undertaking prescribed digital transactions and eligibility for enhanced next tranche of loan have also been provided," the statement from the Ministry read. Small Industries Development Bank of India (SIDBI) is the implementation partner for the scheme. A graded guarantee cover is provided, on a portfolio basis, to these lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to encourage lending to street vendors.

 

"It envisages bringing ‘Banks at the doorsteps’ of these ‘nano-entrepreneurs’ by engaging the Non-Banking Financial Companies (NBFCs) and the Micro-Finance Institutions (MFIs) as lending institutions. It is in addition to Scheduled Commercial Banks - Public & Private, Regional Rural Banks, Cooperative Banks, SHG Banks etc. The onboarding of the vendors on digital payment platforms is a very important component to build the credit profile of the vendors to help them become part of the formal urban economy," it further added.

 

Last week, the ministry had launched the "Letter of Recommendation module" through which street vendors, who don't have identity cards or certificates of vending, can also avail benefits under the scheme.