Over 5 lakh applications received under PM SVANidhi scheme

New Delhi, August 12, 2020: The number of loan sanctions and applications received under the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme have crossed the mark of 1 lakh and 5 lakhs respectively within 41 days of commencement of the lending process on July 2, 2020.
The PM SVANidhi scheme has generated enthusiasm among street vendors looking for access to affordable working capital credit for re-starting their businesses post COVID-19 lockdown.
The PM SVANidhi Scheme was launched by Ministry of Housing & Urban Affairs under the ambit of ‘AtmaNirbhar Bharat Abhiyan’.
It aims at facilitating collateral free working capital loans upto Rs 10,000 of 1 year tenure, to about 50 lakh street vendors in the urban areas, including t surrounding peri-urban/rural areas, to resume businesses post COVID-19 lockdown.
Incentives in the form of interest subsidy @ 7% p.a. on regular repayment of loan, cashback upto Rs 1,200 p.a. on undertaking prescribed digital transactions and eligibility for enhanced next tranche of loan have been provided.
PM SVANidhi Scheme envisages bringing ‘Banks at the doorsteps’ of these ‘nano-entrepreneurs’ by engaging the Non-Banking Financial Companies and Micro-Finance Institutions as lending institutions in addition to Scheduled Commercial Banks – Public & Private, Regional Rural Banks, Cooperative Banks, SHG Banks etc.
The onboarding of the vendors on a digital payment platform is a very important component to build the credit profile of the vendors to help them become part of the formal urban economy.
Small Industries Development Bank of India (SIDBI) is the implementation partner for the scheme.
A graded guarantee cover is provided, on portfolio basis, to these lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises to encourage lending to street vendors, who mostly operate businesses on very thin margins.
The micro-credit support under the scheme is expected to provide not only major relief to such vendors but also help them climb the economic ladder.
Use of an integrated IT Platform, Web Portal and Mobile App, has enabled the Scheme to extend its reach and benefits to this segment of society with the objective of minimum government and maximum governance.

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