PM SVA Nidhi scheme

In the history of India, this is the first time that street vendors in urban or rural areas or vendors selling goods on the nearby roads have become beneficiaries of the urban livelihood program.

 The rationale behind the scheme is to provide working capital loans to street vendors.  As we know, street vendors usually operate with small capital base, which would have been consumed during the lockdown period.  So this scheme will be helpful to resume their livelihood.

 Street vendors have played an important role in providing goods and services at affordable rates at the doorstep of the residents.

 Who are street vendors / hawkers?

 Any person, who works to offer goods, goods, daily use goods or services from one place to another in a road, footpath, etc.  The items they supply include vegetables, fruits, ready-to-eat street food, tea, dumplings, bread, eggs, textiles, artisan products, books / stationery etc. and services include barber shops, cobblers, paan shops,  Laundry services etc.

 Who are called Micro, Small and Medium Enterprises?

 What is the purpose of PM Swanidhi scheme?

 - To provide a working capital loan of up to Rs 10,000 at a concessional rate of interest.

 - To encourage regular payment of debt.

 - In addition, rewarding digital transactions.

 - Through this scheme to make the street vendors self-sufficient and empowered and also to improve the condition of the people.

 The beneficiaries of the scheme are:

 The scheme is expected to benefit more than 50 lakh street vendors, hawkers, handlers, street vendors, pheli phalwale, etc., who had vending in urban areas on or before March 24.  As beneficiaries, street vendors belonging to the surrounding urban or rural areas are also covered under the Urban Livelihood Program for the first time.

 Salient Features of PM Swanidhi Yojana

 - Street vendors can avail working capital loans up to Rs 10,000.

 - Those loans can be repaid in monthly installments within a period of one year.

 - On timely / early repayment of loan, the interest subsidy at the rate of 7% per annum will be deposited on six monthly basis through direct benefit transfer to the bank accounts of the beneficiaries.

 - No penalty will be taken on whoever repays the loan ahead of time.

 - Encourage digital transactions.  The scheme will encourage digital transactions through monthly cash back to street vendors.

 - There will be high credit eligibility on timely repayment of first loan.  If the street vendor pays the installments on time or first develops a reliable credit score, then he will be eligible for a higher amount of term loan like Rs 20,000.

 Term of PM Swanidhi Scheme

 The plan period is till March 2022.

 What is an economic package and why is it given?

 The lending institutions under this scheme are:

 In the implementation of the plan, urban local bodies will play an important role.  The lending institutions under this scheme are Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Co-operative Banks, NBFCs, Micro Finance Institutions and Self Help Group Banks.

 What is the role of ULBs?

 As discussed above, Urban Local Removal (ULB) will play an important role such as targeting the beneficiary and ensuring access to them in an efficient manner.

 Use of technology for empowerment:

 - Government's vision of effective technology is to ensure effective delivery and transparency.  And for this scheme a digital platform with web portal / mobile app with end-to-end solution is being developed.

 - This IT platform will also help to integrate vendors into the formal financial system.

 - This platform will integrate with SIDBI's Udyami Mitra Portal for credit management and Paisa Portal of Ministry of Housing and Urban Affairs to automatically control interest subsidy.