As the scheme of PM SvaNidhi (PM Street Vendor’s AtmaNirbhar Nidhi) completes a year, here are some of the details which may be helpful for those who want to understand the schemes the government is bringing and also suggest those who could be benefitted from it.
Launched on June 1, 2020, the micro-credit scheme for street vendors targeted the roadside and street vendors who could expand their work with a loan from the government. The validity of the scheme is till March 2022, and the initiative was brought by the Ministry of Housing and Urban Affairs. The scheme guarantees a working capital loan of Rs.10,000 without any collateral. On timely payment or payment before the time, an interest subsidy of 7% would be credited to the bank accounts of the beneficiaries through Direct Bank Transfer on a 6 monthly basis on the next loan amount, which would be of Rs. 20,000. The Small Industries Development Bank of India (SIDBI) was given the charge to implement this.
As a result of this scheme, the state which has benefitted the most or, if put in other words, the state where most loans are being given is, Uttar Pradesh. Keeping in mind the fact that there is a good number of people who are earning their living through the street vending work, this is an initiative that would encourage them, and monetary help would cater to their need of expanding their work further. If the scheme is a success and benefits many at large, then the government may further extend the validity of the scheme to extend the benefit to more number of people.