AUG 3, 2023
Ministry of Housing and Urban Affairs (MoHUA) launched the Prime Minister Street Vendor’s AtmaNirbharNidhi (PM SVANidhi) Scheme on June 01, 2020 with the aim to facilitate collateral free working capital loan to street vendors to restart their businesses, which were adversely impacted during the Covid-19 pandemic. The Scheme has the following objectives:
- Facilitate collateral free working capital loan up to ₹ 10,000, of 1 year tenure, with enhanced loan of ₹ 20,000 and ₹ 50,000 in the second and third trances respectively, on repayment of earlier loans.
- Incentivize regular repayment, through interest subsidy @ 7% per annum; and
- Reward digital transactions, by way of cash back up to ₹ 1,200 per year.
Under the PM SVANidhi Scheme, all street vendors engaged in vending in urban areas are eligible. These Street Vendors should have either a Certificate of Vending (CoV) or a Letter of Recommendation (LoR) issued by the respective Town Vending Committee (TVC).Street Vendors can avail maximum of ₹ 50,000 in the 3rd tranche of loan under PM SVANidhi on successful repayment of earlier loan. As on 31.07.2023, 51.35 lakh loans amounting to ₹ 6607.94 Cr have been disbursed under 3rd tranche loan under PM SVANidhi Scheme.Under the PM SVANidhi Scheme, the loan of ₹ 10,000, ₹ 20,000 and ₹ 50,000 given under 1st, 2nd and 3rd has to return within the term of 12 months, 18 months and 36 months respectively. The rate of interest charged by the Lending Institutions is as per the extant RBI guidelines. An interest subsidy of 7% is paid by the Union Government on a quarterly basis on timely repayment of EMIs.Under the PM SVANidhi Scheme, loans are directly disbursed by lending institutions to the Street Vendors. As such, action, if any, against the defaulters for non-return of loan amount is taken by the concerned Lending Institutions.This information was given by the Minister of State in the Ministry of Housing And Urban Affairs, Shri Kaushal Kishore, in a written reply in the Lok Sabha today.