PM SVANidhi scheme

• PM SVANidhi scheme, achieved its target of reaching 50 lakh beneficiaries.
• So far, as many as 65.75 lakh loans exceeding Rs 8,600 crore in disbursement took place.
• Currently, Madhya Pradesh, Assam, and Gujarat are among the top-performing states, while Ahmedabad, Lucknow, Kanpur, Indore, and Mumbai are the leading cities in terms of implementation.

ABOUT PRIME MINISTER STREET VENDOR’S ATMANIRBHAR NIDHI (PM SVANIDHI) SCHEME

• Street vendors play an integral role in the urban informal economy, providing essential goods and services to urban residents.
  • The PM SVANidhi scheme has been instrumental in bringing them into the formal economic fold.
• PM SVANidhi scheme is a Central Sector Scheme under the aegis of the Ministry of Housing and Urban Affairs (MoHUA).
• The scheme, launched on June 1, 2020, is a micro-credit scheme for urban street vendors that aims to provide collateral-free working capital loans up to Rs 50,000.
  • The 3^rd term loan of up to ₹50,000 is in addition to 1st & 2nd loans of ₹10,000 and ₹20,000 respectively.
• Under the scheme regular repayments are incentivized with a 7 per cent interest subsidy and digital transactions are rewarded with cashback up to Rs 1,200 per year.
• The scheme employs Aadhaar-based e-KYC, utilizes an end-to-end IT platform, and employs SMS-based notifications for application status updates.