What is the news ?
The number of loan sanctions and number of applications received under 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 02, 2020.
What is PM SVANidhi ?
- PM Street Vendor’s AtmaNirbhar Nidhi, 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,
- It will benefits to about 50 lakh street vendors in the urban areas including those from the surrounding peri-urban/ rural areas, to resume their businesses post COVID-19 lockdown.
- Incentives in the form of interest subsidy @ 7% per annum on regular repayment of loan, cashback upto Rs 1,200 per annum on undertaking prescribed digital transactions and eligibility for enhanced next tranche of loan have also been provided.
- Small Industries Development Bank of India (SIDBI) is the implementation partner for the scheme.
Need for such schemes
- The street vendors mostly operate their 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 (pmsvanidhi.mohua.org.in), Web Portal and Mobile App, has enabled the Scheme to extend its reach and benefits to this segment of society
- Besides this support the objective of minimum government and maximum governance.
Source : PIB
Topic : Prelims
GS III : Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes