PM SVANIDHI Scheme
Table of Contents
PM SVANIDHI Scheme: Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the door-step of the city dwellers. They are known as vendors, hawkers, thelewala, rehriwala, theliphadwala etc. in different areas/ contexts.
The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, footwear, artisan products, books/ stationary etc. The services include barber shops, cobblers, pan shops, laundry services etc. The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base and might have consumed the same during the lockdown. Therefore, there is an urgent need to provide credit for working capital to street vendors to resume their business.
Launched date– 1st June 2020
Ministry – Ministry of Housing and Urban Affairs
Aim– Mainly aims to provide micro credit facilities to street vendors affected due to covid19 pandemic.
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Street vendors in India
It is esmated that there are 50 lakh street vendors in india with the largest consntraition in big cities anyone who doesn’t have a permanent shoap is considered a street vendor.
Most of them are migrant workers who typically work for 10-12 hours everyday on an average.
Street vendor organization
National hawker federation NHF
It is a federation of 1400 street vendor organization and trade unions that has a presence in 28 states.
National association of street vendors of india NASVI
It has been instrumental in getting the landmark street vendors (protection of livelihood and regulation of street vending) act of 2014 passed.
Target beneficiary of the scheme –
- street vendors or hawkers in urban areas
- street vendors of peri urban areas
- street vendors of rural areas
PM SVANIDHI scheme is only applicable for those street vendors whose business affected before 24th march and for that required documents are aadhar card and voter id card.
Tenure of the scheme is june2020-march2022.
Features of PM SVANidhi
- It is a central sector scheme
- It will provide affordable working capital loans to street vendors who are left affected by the novel coronavirus pandemic.
- It will be implemented till March 2022.
- The centre has earmarked a stimulus package of rs. 5000 crore for nearly 50 lakh vendors.
- Vendors will be provided with an initial working capital of up to Rs. 10000
- A vendor will get an interest subsidy at 7 per cent at early or timely repayment of loans.
- There is a provision of monthly cash-back incentive on digital payments.
- Monthly cashback in the range of Rs. 50-100.
- A vendor has the high probability to be eligible for a higher loan if he/she repays the first loan on time.
- A vendor does not have to provide any collateral security to access the loan.
Objectives of PM SVANIDHI
- To give vendors access to affordable working capital loans which can help them to resume their livelihood activities post-countrywide lockdown (due to the pandemic.)
- To incentivize regular repayment of loans by provisions like cash-back, higher loans on subsequent demands etc.
- To promote digitalization by rewarding vendors who opt for digital repayments of loans.
The scheme is a Central Sector Scheme i.e. fully funded by Ministry of Housing and Urban Affairs with the following objectives: (i) To facilitate working capital loan up to `10,000; (ii) To incentivize regular repayment; and (iii) To reward digital transactions
The scheme will help formalize the street vendors with above objectives and will open up new opportunities to this sector to move up the economic ladder.
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Frequently Asked Questions( FAQs)
What is PM SVANIDHI Scheme?
This is a Central Sector Scheme to facilitate street vendors to access affordable working
capital loan for resuming their livelihoods activities, after easing of lockdown.
What is the rationale of the Scheme?
The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base, which they might have consumed during the lockdown. Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.
What are the objectives of the Scheme?
(i) To facilitate working capital loan up to `10,000 at subsidized rate of interest;
(ii) To incentivize regular repayment of loan; and
(iii) To reward digital transactions.
Who is a Street Vendor/hawker?
Any person engaged in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement etc., from a temporary built up structure or by moving from place to place. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, artisan products, books/ stationary etc. and the services include barber shops, cobblers, pan shops, laundry services etc.
