Brain Booster for UPSC & State PCS Examination (Topic: PM SVANidhi)

Brain Booster for UPSC & State PCS Examination

Topic: PM SVANidhi

PM SVANidhi

The Ministry of Housing and Urban Affairs (MoHUA)has launched PradhanMantri Street Vendor’s AtmaNirbharNidhi (PM SVANidhi) schemefor providing affordable Working Capital loan to street vendors to resume their livelihoods that have been adversely affected due to COVID-19 lockdown.

It is a special micro-credit facility plan to provide affordable loan of up to Rs. 10,000 to more than 50 lakh street vendors, who had their businesses operational on or before 24 March.
The scheme is valid until March 2022.
Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year. ( On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis. There will be no penalty on early repayment of loan.
The scheme is applicable to vendors, hawkers, thelewalas, rehriwalas, theliphadwalas in different areas/contexts who supply goods and services. ( Street vendors belonging to the surrounding peri-urban/rural areas are also included.
Ministry of Housing and Urban Affairs is the nodal ministry for this scheme.

An integrated IT platform (pmsvanidhi.mohua.gov.in) to provide an end-to-end solution for scheme administration is being developed by SIDBI, which is the scheme implementation partner for PM SVANidhi. ( SIDBI will manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The portal will facilitate multiple scheme functions viz. loan application flow, Mobile App, e-KYC of applicants, integration with UIDAI, Udyamimitra, NPCI, PAiSA, lenders, States, Urban Local Bodies (ULBs) and other stakeholders, calculation of digital incentives and payment of interest subsidy etc.
ULBs will play a pivotal role in the implementation of the scheme by ensuring to target the beneficiary and reaching to them in an efficient manner.
In the first phase, 108 cities have been selected to roll out the PM SVANidhi scheme and the disbursement of the loan is set to to start in July 2020.
The scheme incentivises digital transactions by the street vendors through monthly cash back.
MoHUA in collaboration with State Governments, State Missions of DAY-NULM, ULBs, SIDBI, CGTMSE, NPCI and Digital Payment Aggregators will also launch a capacity building and financial literacy programme of all the stakeholders and IEC activities throughout the country during the month of June and loaning will commence in the month of July.

The scheme is aimed at enabling the street vendors to resume their livelihoods that have been adversely affected due to COVID-19 lockdown. ( The lockdown has affected the lives and livelihoods of many especially daily wagers including street vendors who businesses were affected due to the restrictions.
The scheme promotes digital transactions through cash back incentives up to an amount of Rs 100 per month.
Moreover, the vendors can achieve their ambition of going up on the economic ladder by availing the facility of escalation of the credit limit on timely or early repayment of loan.