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Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi Scheme 2020

•  Housing And Urban Affairs Ministry launched the Pradhan Mantri Street Vendor Scheme to enable street vendors to resume their livelihood.
• Livelihood of street vendors was badly affected by national lockdown.
• It is a special micro-credit facility scheme for providing affordable loan to street vendors.

Affordable Loans Under PM SVANIDHI

• Under the scheme, street vendors can avail working capital loan of up to ₹10,000 to restart their livelihood.
• Loan is repayable in monthly installments in the tenure of one year.
•  The rate of interest on loans taken under this scheme will be lower than other borrowing schemes.
• No collateral security or guarantee is required to avail the loan.

Benefits of Timely/Early Repayment

•  On timely and early repayment of the loan, an interest subsidy at the rate of 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on six monthly basis.
• If the vendor will repay the installments in time or earlier, he will be eligible for higher amount of term loan to 20 thousand rupees and so on. There will be no penalty on early repayment of loan.

Beneficiaries

•  The scheme targets to benefit over 50 lakh street vendors, who had been vending on or before 24th March this year, in urban areas like
• Vegetable and fruit vendors
• Ready to eat street food vendors
• Hawkers
• Thele walas and Rehri walas
• Cobbler
• Washer man
• Panwaris (beetle shop owners)
• Handicraft vendors

Financial Institutions

•  Small Industries Development Bank of India (SIDBI) is the technical partner for implementation of this scheme.

• SIDBI will manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises.
•  The lending institutions under the Scheme include Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, NBFCs, Micro Finance institutions and Self Help Group banks.

Why a Dedicated Scheme for Street Vendors

•  Street vendors work with a small capital base taken on very high interest rates from informal sources.
• Reports suggest, they have consumed their savings and high cost capital during the lockdown.
• There is an urgent need to provide affordable credit for working capital through formal banking channel to street vendors to help them resume their business.
•  The scheme will also bring 50 lakh street vendors into formal sector.

Importance of Street Vendors in Urban Economy

• Street vendors assist the Government in combating unemployment and poverty.
• They play a crucial role in providing essential goods to people at affordable prices and convenient places.
•  It is the duty of the State to protect the right of these micro-entrepreneurs to earn an honest living.

Street Vendors: Last Line of Defence

• In the lockdown period, these street vendors proved to be an important link in maintaining the supply chain of essential goods.
• To revive economic growth of cities post covid-19 pandemic, it is important to restart the businesses of street vendors

The Parliament passed the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 to protect the livelihood rights and social security of street vendors.

Comment Section

Do you think PM SVANIDHI can bring back the street vendors who have migrated to their respective hometowns?

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