What Is The PM SVANidhi Scheme?
PM SVANidhi scheme is initiated by the Ministry of Housing and Urban Affairs for street vendors to offer loans as a special micro-credit facility. This ensures that street vendors develop an economical and holistic approach to their business.
Objective of PM SVANidhi scheme
Let’s discuss the objectives of PM SVANidhi
● The PM SVANidhi is a special scheme introduced for street vendors to provide loan facilities for them.
● The scheme plans to promote collateral-free capital loans of up to rupees 10,000/- of the one-year term.
● Approximately 50 lakh vendors of the street were offered a loan, to assist in resuming their business in the metropolitan areas, enclosing peri-urban or rural areas.
● The scheme will benefit regularized street vendors with the above purposes and will open up unique chances for this sector to shift up the financial ladder.
● The PM SVANidhi offers interest assistance @ 7% per year on regular reimbursement of loans.
● Cashback of rupees 1200 per year on taking the prescribed digital transactions by them.
● The eligibility criteria for the enhanced next tranche of loans are provided with the PM SVANidhi.
● Nearly 2 million applications were accepted under this PM SVANidhi, of which 752191 have been authorized, and 218751 loans have been disbursed already.
● The initial working capital is provided up to 10000 rupees tenure per annum.
● To promote digital transactions, monthly cashback is provided as the digital transaction in the PM SVAnidhi scheme.
● When the first payment of loan is done then they are eligible for an amount of rupees 20000 to rupees 50000.
● The PM SVANidhi scheme is functional for the vendors who are employed in vending in the urban regions who are committed to intending on or before 2020, March 24.
Government
Eligibility Conditions
The eligibility criteria for the vendors who wish to apply for the PM SVANidhi are as follows.
● Street traders in residence of Certificate of Vending or who have the Identity Card published by the Urban Local Bodies (ULBs).
● The sellers, who have been specified in the survey but have not been allocated Certificate of Vending or Identity Card. For such persons provisional Certificate of Vending would be provoked for such sellers based on the IT Platform. ULBs are provided to allocate such traders the enduring Certificate of Vending and Identification Card instantly and completely within one month.
● Street Vendors, left out of the ULBled designation survey or who have commenced vending after fulfillment of the survey and have been allocated Letters of Recommendation (LoR) to those influenced by the ULB/Town Vending Committee (TVC).
● The dealers of surrounding expansion/peri-urban/rural neighborhoods vending in the geographical boundaries of the ULBs have been published a Letter of Recommendation (LoR) to that outcome by the ULB/TVC.
Conclusion
The PM SVANidhi helps the street vendors who represent a significant role in the informal urban economy and it plays a vital role in ensuring the availability of goods and services.
The street vendors usually work with a capital base that is small and would require to equip them with working capital so that their business will flourish which in turn helps to build the economy.
