Why in the News?

The Union Housing and Urban Affairs Ministry has recently announced a fresh target for its PM SVANidhi scheme, focusing on empowering street vendors.

About PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme:

• Launched on June 01, 2020, by the Ministry of Housing and Urban Affairs, the PM SVANidhi Scheme aims to assist street vendors affected by the Covid-19 lockdown in reviving their livelihoods.
• As a micro-credit initiative, it provides street vendors with a collateral-free loan of Rs. 10,000 at a low-interest rate (below 12%) for one year, facilitating their financial recovery.
• Originally scheduled until March 2022, the scheme has now been extended till December 2024 with a focus on expanding the affordable loan corpus, encouraging digital transactions, and promoting holistic socio-economic development for street vendors and their families.
• Eligibility for the loan requires street vendors who were vending on or before March 24, 2020, and hold a certificate of vending issued by the Town Vending Committees (comprising local authorities and vendors) after conducting a survey.
• The scheme offers several benefits, including an interest subsidy of 7% per annum on timely loan repayment, no penalty on early repayment, cash back incentives up to Rs. 100 per month to promote digital transactions, and the possibility of credit limit escalation for prompt loan repayment.
• The Small Industries Development Bank of India (SIDBI) serves as the implementation agency for the scheme, ensuring efficient delivery and monitoring of financial support to street vendors across the country.