The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM-SVANidhi) Scheme has impacted the lives of over 46.54 lakh street vendors since its initiation on June 1, 2020. The scheme aimed to empower these small traders by providing them with microfinance loans. This initiative is a part of the Atmanirbhar Bharat Abhiyan and has marked its stamp in the society over the past three years.
Overview of PM-SVANidhi
Launched by the Ministry of Housing and Urban Affairs, PM-SVANidhi is a fully-funded Central Sector Scheme. It aims to provide working capital loans to street vendors and rewards regular repayment and digital transactions. The introduction of the third term loan, adding to the existing first and second loans, offers up to ₹50,000 without any collateral requirement.
Eligibility and Lending Agencies
The scheme benefits only those States/Union Territories (UTs) that have notified Rules and Scheme under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Beneficiaries from Meghalaya, which has its State Street Vendors Act, can also participate. The lending agencies of this scheme are Microfinance Institutions, Non-Banking Financial Company, Self Help Groups which are closer to the urban poor, including street vendors.
Advantages of Early Repayment
For the beneficiaries who repay their loans on time or earlier, the scheme provides subsidized interest rates of 7% per annum, credited directly to their bank accounts. It also extends credit limits and does not penalize early repayments of loans.
E-governance and Digital Transaction Encouragement
With an aim to promote transparency, the PM-SVANidhi scheme is developing a digital platform with an integrated web portal and mobile app. This platform will work in collaboration with the UdyamiMitra portal of SIDBI for credit management and PAiSA portal of MoHUA to administer interest subsidy automatically. The scheme also incentivizes street vendors for performing digital transactions by providing monthly cash back.
Financial Inclusion and Capacity-Building Drive
This scheme strives towards integrating vendors into the formal financial system. The Ministry of Housing and Urban Affairs along with State Governments, will also launch programmes focusing on capacity building, financial literacy, and information, education and communication (IEC) activities across the country.
Key Role of Urban Local Bodies (ULBs)
Urban Local Bodies play a crucial role in implementing this scheme as they ensure to efficiently reach out to the beneficiaries.
Who are Street Vendors?
Street vendors or hawkers are individuals who sell goods or services to the public in streets, footpaths, pavements, etc., either from temporary structures or by moving from place to place. The goods supplied by them range from vegetables, ready-to-eat food, tea, apparel, artisan products, to books or stationary, and services such as barber shops, laundry services, etc.
According to data, India has identified around 49.48 lakh street vendors, with Uttar Pradesh having the maximum at 8.49 lakh, followed by Madhya Pradesh at 7.04 lakh. Delhi has only 72,457 street vendors, while no street vendor has been identified in Sikkim.
Previous Year Questions in UPSC Civil Services Examination
In the past, questions related to microfinancing and its impact have been asked in UPSC civil services examination. For example, in 2021, a question regarding whether the vicious cycle of gender inequality, poverty, and malnutrition can be broken through the microfinancing of women SHGs was asked. In 2016, a question on how globalization has affected employment in the formal sector of the Indian economy was also featured.
