Over 50 Lakh Street Vendors Benefit from PM SVANidhi Micro-Credit Scheme

In a significant development, more than 50 lakh street vendors across India have availed loans totaling ₹8,600 crore through the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, initiated in 2020 to assist them during the COVID-19 pandemic. The scheme, initially designed to provide immediate relief to street vendors affected by the pandemic, has surpassed expectations, reaching its zenith in just over three years.

Source: https://citizenmatters.in/

In a significant development, more than 50 lakh street vendors across India have availed loans totaling ₹8,600 crore through the PrimeMinister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, initiated in 2020 to assist them during the COVID-19 pandemic. The scheme, initially designed to provide immediate relief to street vendors affected by the pandemic, has surpassed expectations, reaching its zenith in just over three years.

Under the PM SVANidhi scheme, street vendors are eligible for collateral-free working capital loans, with amounts extending up to ₹50,000. What sets this initiative apart is the attractive 7% interest subsidy that incentivizes regular repayments, along with cashback rewards of up to ₹1,200 per year for digital transactions.

The Ministry of Housing and Urban Affairs, responsible for piloting the scheme, launched a campaign on July 1 to revise the program's targets. Numerous high-level review meetings involving senior bureaucrats and public sector banks were conducted to streamline the process. As a result, a staggering 65.75 lakh loans, surpassing ₹8,600 crore in value, were disbursed to more than 50 lakh street vendors.

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States have made remarkable progress by enrolling over 12 lakh new vendors into the scheme over the past three months. Notable performers include Madhya Pradesh, Assam, and Gujarat, while cities such as Ahmedabad, Lucknow, Kanpur, Indore, and Mumbai have emerged as leaders in implementing the program.

Union Urban Development Minister Hardeep Singh Puri expressed his satisfaction, stating, "The PM SVANidhi Scheme has exceeded our expectations by reaching over 50 lakh beneficiaries in just over three years. This accomplishment demonstrates our dedication to empowering peddlers and incorporating them into established financial institutions."

Beyond its primary function of providing micro-credits, PM SVANidhi also plays a pivotal role in promoting digital payments among street vendors. Moreover, it lays the foundation for an extensive safety net of welfare schemes aimed at benefiting the families of scheme beneficiaries. The "SVANidhi se Samriddhi" initiative, launched on January 4, 2021, seeks to connect beneficiary families to eight government socio-economic welfare schemes, fostering holistic development.

This accomplishment highlights the government's dedication to uplifting street vendors, helping them become an integral part of the formal economy while enhancing their access to credit and digital financial services. The PM SVANidhi scheme serves as a beacon of hope for millions of street vendors striving for economic stability in challenging times.