Under PM SVANidhi Program 50 lakh street vendors had received payments: Learn about this program
As of November 13, more than 50 lakh street vendors had received payments under the Prime Minister's Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) scheme totaling more than Rs. 95,000 crore, according to financial services secretary Vivek Joshi's announcement on Sunday.
What is PM SVANidhi Program?
The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) program was introduced by the Ministry of Housing & Urban Affairs to empower street vendors by providing loans for their complete development and economic upliftment.
About 50 lakh street vendors are expected to benefit from the scheme, which aims to provide collateral-free working capital loans with a one-year term of up to INR10, 000 to help them restart their businesses in urban areas and surrounding peri-urban/rural areas.
72.44 lakh PM SVANidhi loans approved till now
Speaking at a PM SVANidhi outreach program in Tamil Nadu, Joshi stated that although 72.44 lakh PM SVANidhi loans have been approved thus far, public sector banks (PSBs) must quicken the pace of payments to include a greater number of people under the scheme.
Scheme introduced in year 2020
PMSVANidhi, a microcredit scheme designed specifically for street vendors, was introduced on June 1, 2020. It offers working capital loans in portions of up to Rs. 50,000 without the need for collateral.
Credit in the amount of Rs. 10,000 is given under this scheme for the first 12 months, Rs.20,000 for the following 18 months under the second segment, and Rs.50,000 for the next 36 months under the third section.
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A quarterly interest subsidy of 7% is also available to vendors who take out loans under the scheme; this subsidy is credited to the borrowers' accounts.
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