PM SVANidhi Scheme Completes Three Years, Performance Evaluation

PM SVANidhi Scheme: It is a government initiative launched to support street vendors in India. It provides affordable working capital loans to street vendors to help them restart their businesses and improve their livelihoods. Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme is also important for UPSC Prelims Exam and UPSC Mains Exam (GS Paper 2- Various government Schemes and initiatives for ensuring/promoting the welfare of vulnerable sections of the population).

PM SVANidhi in News

Minister Hardeep S. Puri, responsible for the Ministry of Housing and Urban Affairs and Petroleum and Natural Gas, commended the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme on reaching a significant milestone of three years.

• The Minister praised the scheme for its rapid implementation, highlighting that it has been one of the swiftest government initiatives to be rolled out.
• Additionally, he emphasized that PM SVANidhi has brought about an unprecedented wave of financial inclusion and digital literacy in urban areas of India, providing street vendors with dignity and stability in their livelihoods.

PM SVANidhi Scheme Performance over 3 years

PM SVANidhi scheme has achieved significant milestones over the past three years. The scheme facilitates working capital loans in three tranches to the Street Vendors.

• It has been providing microcredits to more than 36 lakh Street Vendors across India.
• As on June 30, 2023, 48.5 lakh loan applications have been sanctioned, with over 46.4 lakh loans disbursed to street vendors, amounting to a total of Rs. 5,795 crore.
• Digital on boarding and training have been a key component of the scheme and the Ministry is taking various efforts training all PM SVANidhi beneficiaries in making digital transactionsand thus providing them social acceptance and dignity.

Extension of PM SVANidhi Scheme

Cabinet Committee on Economic Affairs had approved the continuation of lending under the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) from March 2022 till December 2024.

• Need: The proposed extension of the PM SVANidhi Scheme has been necessitated as the COVID-19 pandemic and related stress on the small businesses, have not fully retracted.
• Increased Fund Allocation: The extension of the PM SVANidhi Scheme has increased the loan amount to Rs. 8,100 crore, from present Rs. 5000 Crore, thereby providing the Street vendors working capital to further expand their business and making them AtmaNirbhar.
• Expected Benefits to the poor: The extension of the PM SVANidhi Scheme is expected to benefit nearly 1.2 crore citizens of Urban India. The extension of lending till December 2024, would-
  • Assist in institutionalizing the access to formal credit channels,
  • Provide an assured source of credit to help them plan their business expansion,
  • Increasing the adoption of digital transactions,
  • Reduce the impact of potential NPAs on the Lending Institutions and
  • Provide holistic socio-economic upliftment for the Street Vendors and their families.

PM SVANidhi Details

PM SVANidhi Scheme launched on 01 June, 2020, aiming to restore Swarozgar, Svavlamban, Swabhimaan (Self Employment, Self-Sustenance, and Self-Confidence) within street vendors has become one of the fastest growing micro-credit schemes of the Government of India and has provided its citizens access to credit and linkages to social security schemes.

• About: PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is a Special Micro-Credit Facility Scheme for providing affordable loans to street vendors.
• Parent Ministry: PM SVANidhi scheme is being implemented by the Ministry of Housing and Urban Affairs. Urban Local Bodies will play a pivotal role in the implementation of the scheme.
• Beneficiaries: Over 50 lakh people, including vendors, hawkers, thelewalas, rehriwala, theliphadwala etc. in different areas/ contexts are likely to benefit from the PM SVANidhi scheme.
  • The goods supplied by them range from vegetables, fruits, ready-to-eat street foods, tea, pakodas, breads, eggs, textiles, apparel, footwear, artisan products, books/ stationaries etc.
  • The services include barbershops, cobblers, pan shops, laundry services etc.
• Implementation: An Integrated IT Platform has been developed for the implementation of the PM SVANidhi Scheme. The application process is fully online.
  • Street Vendors can apply for loans directly through PM SVANidhi Portal. The application can also be submitted at Municipal Offices and Common Service Centres (CSCs).
  • In addition, the SVs can approach municipal functionaries or representatives of Lending Institutions to apply through PM SVANidhi mobile App.
• Providing Capital (Loan facility): The street vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly installments within a year.
  • This loan would be collateral-free and there will be no penalty on early repayment of the loan.

PM SVANidhi Objectives

The primary objective of the PM SVANidhi Scheme is to provide affordable working capital loans to street vendors to restart their businesses, enhance their livelihoods, and become self-reliant.

• It aims to formalize the street vending sector and promote their inclusion in the urban economy.
• It aims to provide support and empower street vendors who face financial challenges and lack access to formal credit facilities. Some key details about the PM SVANidhi Scheme are discussed below.

PM SVANidhi Eligibility Criteria

Street vendors who fulfill certain criteria are eligible to apply for the PM SVANidhi Scheme. The eligibility criteria include:

• Street vendors who were in vending activities on or before March 24, 2020.
• Vendors above the age of 18.
• Street vendors identified in the survey conducted by urban local bodies (ULBs).
• Vendors with no access to formal credit facilities.

PM SVANidhi, Loan Amount and Tenure

Under the PM SVANidhi Scheme, street vendors can avail of working capital loans up to Rs. 10,000. The loan tenure is for one year, with an option for monthly or weekly installments.

PM SVANidhi Subsidy and Cashback

To promote timely repayment of loans, the scheme offers a monthly cashback incentive of Rs. 100 to vendors who make regular repayments. Also, vendors who repay their loans effectively can avail an interest subsidy at 7% per annum.

PM SVANidhi Application Process

The application process for the PM SVANidhi Scheme is simple and can be done through online and offline modes. Street vendors can apply through the Common Service Centres (CSCs) established at various locations or through the PM SVANidhi portal.

PM SVANidhi Benefits

The PM SVANidhi Scheme provides several benefits to street vendors, including:

• Access to affordable credit and working capital.
• Increased business opportunities and income generation.
• Formalization of street vending activities.
• Provision of identity cards and vendor certificates.
• Skill training and capacity building programs.

PM SVANidhi Monitoring

The PM SVANidhi scheme is implemented by the Ministry of Housing and Urban Affairs in collaboration with state governments, urban local bodies, and other stakeholders. The progress and implementation of the scheme are monitored through the PM SVANidhi dashboard, which provides real-time information on the number of applications, loans disbursed, and other relevant data.

PM SVANidhi, Conclusion

The PM SVANidhi Scheme aims to uplift the lives of street vendors by providing them with access to credit and enabling them to sustain and expand their businesses. It seeks to promote their economic inclusion and contribute to the overall growth of the urban economy.

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