pm-svanidhi-pm-street-vendors-atmanirbhar-nidhi

Context: A Memorandum of Understanding has been signed between Ministry of Housing & Urban Affairs and Small Industries Development Bank of India (SIDBI), in order to engage SIDBI as the Implementation Agency for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi).

About PM SVANidhi:

  • It is a Special Micro-Credit Facility for Street Vendors launched by the Ministry of Housing and Urban Affairs on June 01, 2020.
  • It will provide affordable Working Capital loans to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown.
  • This scheme targets to benefit over 50 lakh Street Vendors. 
  • Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year. 
  • On timely/early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis. 

Role of SIDBI:

  • As per the MoU, SIDBI will implement the PM SVANidhi Scheme under the guidance of MoHUA. 
  • It will also manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). 
  • It will develop and maintain a customized and integrated IT Platform providing end-to-end solutions, including documentation of all the processes and workflows for an end-to-end solution, through a Portal and a Mobile App.
    • This will ensure engagement and information flow between Urban Local Bodies (ULBs), Lending Institutions, Digital Payment Aggregators and other stakeholders.
  • It will leverage the network of lending Institutions like Scheduled Commercials Banks (SCBs), Non-Bank Finance Companies (NBFCs), Micro Finance Institutions (MFIs), Co-operative Banks, Small Finance Banks (SFBs), Regional Rural Banks (RRBs), etc. for the Scheme implementation.
  • With a view to ensure effective implementation, SIDBI shall also provide a Project Management Unit (PMU). 

Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1632543