The Ministry of Housing and Urban Affairs (MoHUA) is implementing Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme since June 01, 2020 to facilitate provision of collateral free working capital loan to street vendors to restart their businesses, which were adversely impacted during the Covid-19 pandemic.
As on March 24, 2022, the number of beneficiaries under the PM SVANidhi Scheme are 29.1 lakh and a credit of ₹3,170 crore has been disbursed.
PM SVANidhi Scheme has achieved its objective of facilitating loans to the Street Vendors to restart their business. As on March 24, 2022, 30.5 lakh loans which include 1st as well as 2nd tranche loans, have been disbursed.
As on March 24, 2022, Private Sector Banks have disbursed 61,358 loans, which account for just 2% out of total of 30.5 lakh loans disbursed.
The Ministry of Housing and Urban Affairs (MoHUA) & Department of Financial Services (DFS) regularly conduct review meetings with the Lending Institutions (LIs) including private sector banks, to improve their performance. From FY 2020-21 to FY 2021-22, the percentage share in loans sanctioned by Private Sector Banks has increased from 1.9% to 11.6% while percentage of share in disbursements has increased from 1.7% to 2.5%.
The Ministry has signed an MoU with Small Industries Development Bank of India (SIDBI) for implementation of PM SVANidhi Scheme. SIDBI has leveraged the Udyami Mitra Portal and the network of lending Institutions, which include Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, Non-Banking Financial Companies (NBFCs) & Micro-Finance Institutions (MFIs) for scheme implementation.
The Lending Institutions charge rates of interest as per the extant Reserve Bank of India guidelines.
An interest subsidy of 7% is paid on quarterly basis on timely repayment of the loans.
(Published from PIB)
Click here to subscribe to The Commune on Telegram and get the best stories of the day delivered to you personally.