As of August 3, 2023, a loan amount of Rs 9,152 crore has been disbursed to over 32 lakh street vendors across India through the Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme.
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| Street entrepreneurship loan schemes |
Pm SVANIDHI scheme to promote entrepreneurship
This scheme was launched in June 2020 to provide collateral-free working capital loans of up to Rs 10,000 to street vendors to help them resume their businesses during the COVID-19 pandemic.
The PM SVANidhi Scheme has been instrumental in helping street vendors to get back on their feet and rebuild their livelihoods. It has also helped to promote entrepreneurship and self-reliance among street vendors. The scheme has been well-received by street vendors, and the government has been extending it on a regular basis.
Under this scheme, a recent study by SBI said that 43 per cent of the beneficiaries are women street vendors. Also, 44 per cent of Prime Minister's Svanidi beneficiaries belong to the OBC category, while Scheduled Castes and Tribes account for 22 per cent.
Public sector banks are the leading lenders. Among public sector banks, State Bank of India (SBI) has disbursed 31 per cent of total loans under the scheme, followed by Bank of Baroda (31%), Union Bank of India (10%) and Punjab National Bank (8%).
According to Prime Minister's Swanithi data, about 5.9 lakh borrowers are in 6 metros and 7.8 lakh borrowers belong to cities with a population of over 1 crore. Ahmedabad has the maximum number of BM Svanidi account holders at 1,37,516. 45 per cent in Varanasi, 31 per cent in Bengaluru, 30 per cent in Chennai and 30 per cent in Prayagraj are among the borrowers and repayers.
In addition to providing financial assistance, the PM SVANidhi Scheme also offers a number of other benefits to street vendors, such as:
- Interest subsidy of 7% on timely repayment of loans
- Cashback of up to Rs 1,200 per annum on digital transactions
- Eligibility for enhanced next tranche of loans
- Access to training and capacity-building programs
The PM SVANidhi Scheme is a commendable initiative of the Indian government to support and empower street vendors. It has played a vital role in helping street vendors to overcome the challenges posed by the COVID-19 pandemic and rebuild their businesses.