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Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

Team AckoJan 18, 2024

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a groundbreaking initiative by the Government of India to uplift and empower street vendors across the country. This scheme provides financial assistance, credit, and other essential support to street vendors who have been significantly impacted by the COVID-19 pandemic and are striving to revive their businesses. In this article, we will delve into the details of the PM SVANidhi scheme and how it is transforming the lives of street vendors nationwide.

Contents

Overview and Objectives of PM SVANidhi
How does Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) work?
Key features and Benefits PM SVANidhi
PM SVANidhi: Impact and Success Stories
Wrapping Up
Frequently Asked Questions (FAQs)

Overview and Objectives of PM SVANidhi

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a flagship scheme of the Ministry of Housing and Urban Affairs, Government of India. It was launched on June 1, 2020, with the objective of providing affordable credit to street vendors to help them resume their businesses and become self-reliant. The scheme primarily focuses on empowering street vendors, commonly known as hawkers, rehri walas, thelewala, and vendors operating in urban and peri-urban areas.

The PM SVANidhi scheme enables street vendors who meet the criteria to access working capital loans without the need for collateral. These loans can reach a maximum of Rs. 10,000 and have a duration of one year. Their purpose is to assist vendors in buying necessary items, acquiring raw materials, and fulfilling their working capital needs. Additionally, the scheme provides an interest subsidy of 7% to vendors who repay their loans promptly, encouraging timely repayments and fostering financial responsibility.

How does Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) work?

The PM SVANidhi scheme has a simple and accessible application process to ensure maximum participation and reach. Street vendors can apply for the scheme through a dedicated online portal or through Common Service Centers (CSCs) set up across the country. The application process is hassle-free and requires minimal documentation, enabling street vendors to easily avail of the benefits of the scheme.

After the application is submitted, it goes through a brief verification procedure conducted by the relevant authorities. Once the verification is successfully completed, the loan amount is directly transferred to the street vendor's bank account. The vendors can then use the funds to revive their businesses, buy inventory, and cover their day-to-day operational costs.

Key features and Benefits PM SVANidhi

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme offers a range of features and benefits to street vendors, promoting financial inclusion and providing a pathway to self-sufficiency. Let's explore some of the key features and benefits of this transformative scheme

Affordable Credit: PM SVANidhi provides affordable working capital loans of up to Rs. 10,000 to street vendors, ensuring easy access to credit without the need for collateral.
Interest Subsidy: The scheme offers an interest subsidy of 7% to vendors who repay their loans on time. This encourages timely repayments and reduces the financial burden on street vendors.
Digital Empowerment: PM SVANidhi promotes digital transactions and digital payments among street vendors. This enables them to adapt to the changing business landscape and enhances their financial literacy.
Enhanced Livelihood: By availing the benefits of PM SVANidhi, street vendors can enhance their livelihoods, expand their businesses, and generate sustainable income for themselves and their families.
Access to Social Security Schemes: Street vendors enrolled under PM SVANidhi are eligible for various social security schemes, including Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). These schemes provide financial coverage and protection in case of any unforeseen events.

PM SVANidhi: Impact and Success Stories

The PM SVANidhi scheme has garnered significant attention and appreciation for its positive impact on the lives of street vendors. By providing them with the necessary financial support and guidance, the scheme has transformed the fortunes of many street vendors and empowered them to overcome the challenges posed by the pandemic. Let's take a look at some inspiring success stories.

Rani Devi's Triumph: Rani Devi, a street vendor selling handcrafted jewellery, availed a loan through the PM SVANidhi scheme. With the funds, she expanded her business, procured better raw materials, and set up an online presence. Today, Rani Devi's business has grown exponentially, and she is even mentoring other aspiring street vendors in her community.
Shyam Singh's Resilience: Shyam Singh, a street vendor selling street food, faced severe financial constraints during the pandemic. However, with the support of PM SVANidhi, he received the much-needed financial boost to restart his business. Shyam Singh's stall is now thriving, attracting customers from far and wide.

These success stories reflect the transformative impact of the PM SVANidhi scheme and how it has uplifted the lives of street vendors across the country.

Wrapping Up

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has emerged as a ray of hope for street vendors across India. By providing affordable credit, digital empowerment, and access to social security schemes, PM SVANidhi is fostering the growth and development of street vendors, enabling them to create sustainable livelihoods. This transformative scheme, with its numerous benefits and success stories, exemplifies the commitment of the Government of India towards building an inclusive and self-reliant economy.

Frequently Asked Questions (FAQs)

Here are some questions about PM SVANidhi.

What is the eligibility criteria for the PM SVANidhi scheme?

To be eligible for the PM SVANidhi scheme, a street vendor must have been in the business of vending on or before March 24, 2020. They should possess a valid identity document and certificate of vending, issued by the urban local body (ULB).

How can street vendors apply for the PM SVANidhi scheme?

Street vendors can apply for the PM SVANidhi scheme through the official online portal or Common Service Centers (CSCs) established across the country. The application process is simple and requires minimal documentation.

What is the maximum loan amount available under the PM SVANidhi scheme?

The PM SVANidhi scheme provides collateral-free working capital loans of up to Rs. 10,000 to eligible street vendors.

Is there an interest subsidy offered under the PM SVANidhi scheme?

Yes, street vendors who repay their loans on time are eligible for an interest subsidy of 7%. This encourages timely repayments and reduces the burden on street vendors.

What documents are required to apply for the PM SVANidhi scheme?

The documents required to apply for the PM SVANidhi scheme include a valid identity document, certificate of vending issued by the ULB, a recent photograph, and a bank account.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.