PM SVANidhi

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In News:

• The Union Minister of Housing and Urban Affairs stated that the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) has become one of the fastest-growing micro-credit schemes of the Union Government.
• He highlighted that the scheme has provided a platform for financial inclusion by facilitating street vendors to carry out digital transactions.
  • He has released Rs. 23.02 crore as cashback to the beneficiaries to promote the use of digital transactions.
• He mentioned that the scheme has helped in providing occupational recognition to street vendors by giving those Letters of Recommendation (LOR) for easy access to loans.
  • A Parichay Board has been given to street vendors to provide them with a sense of identity and dignity in their work.
  • These boards serve as a tool to promote ease of doing business for street vendors while protecting them from undue harassment.
• The Minister highlighted that in the past two years, PM SVANidhi has disbursed more than 40.07 lakh loans worth Rs. 4,606.36 crores to 45.32 lakh beneficiaries.

About PM SVANidhi:

• The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched by the Ministry of Housing and Urban Affairs in June 2020.
• The main objective of the scheme is to provide affordable Working Capital loans to street vendors to restart their livelihoods that have been adversely affected due to the Covid-19 lockdown.
• Vendors can get collateral-free working capital loans up to ₹10,000, which are repayable in monthly installments in term of one year.
  • An enhanced loan of up to ₹20,000 and ₹50,000 on the second and third times respectively, on repayment of earlier loans.
• On timely/ early repayment of the loan, an interest subsidy at the rate of 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer quarterly.
• There will be no penalty for early repayment of the loan.
• The scheme promotes digital transactions through cashback incentives up to an amount of Rs. 100 per month.
• The vendors can avail of the facility of escalation of the credit limit on timely/ early repayment of loans.
• According to the scheme guidelines, a vendor is any person engaged in vending articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement, etc., 
• To avail of the loan, a vendor should: Possess a Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs). 
• KYC documents needed: Aadhar Card / Voter’s Identity Card / Driving License / MGNREGA Card / PAN Card.  
• PM SVANidhi beneficiaries and their families are also eligible for other welfare schemes;
  • Pradhan Mantri Jeevan Jyoti Bima Yojana.
  • PM Suraksha Bima Yojana.
  • Pradhan Mantri Jan Dhan Yojana.
  • Registration under the Building and Other Constructions Workers (Regulation of Employment and Conditions of Service) Act (BOCW).
  • Pradhan Mantri Shram Yogi Maandhan Yojana.
  • National Food Security Act (NFSA) portability benefit – One Nation One Ration Card (ONORC).
  • Janani Suraksha Yojana.
  • Pradhan Mantri Matru Vandana Yojana (PMMVY).
• Quality Council of India (QCI) is the implementing partner for the program.

SVANidhi Se Samriddhi:

• ‘SVANidhi se Samriddhi’, is an additional program of PM SVANidhi, which was launched in 2021 under the Ministry of Housing and Urban Affairs.
• During Phase 1 of the program, it covered 125 cities, covering approximately 35 Lakh Street vendors and their families.
• Phase 2 of the program planning to cover additional 126 cities to support 28 Lakh Street vendors and their families.
• The ‘SVANidhi se Samriddhi’ program was started to provide social security benefits to street vendors for their holistic development and socio-economic upliftment.
• PMSVANidhi beneficiaries and their families are also eligible for other welfare schemes;
  • Pradhan Mantri Jeevan Jyoti Bima Yojana.
  • PM Suraksha Bima Yojana.
  • Pradhan Mantri Jan Dhan Yojana.
  • Registration under the Building and Other Constructions Workers (Regulation of Employment and Conditions of Service) Act (BOCW).
  • Pradhan Mantri Shram Yogi Maandhan Yojana.
  • National Food Security Act (NFSA) portability benefit – One Nation One Ration Card (ONORC).
  • Janani Suraksha Yojana.
  • Pradhan Mantri Matru Vandana Yojana (PMMVY).
• Quality Council of India (QCI) is the implementing partner for the program.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1891031