Prime Minister Street Vendor’s AtmaNirbhar – PM SVANidhi is being implemented by Union Government to help street vendors affected by Covid 19 lockdown. The scheme is fully funded by Union Ministry of Housing and Urban Affairs. Since its launch on June 1 this year, more than 12 lakh street vendors have applied till now for credit assistance of Rs 10,000. Banks have sanctioned credit assistance to 4.2 lakh beneficiaries according to central government. The SVANidhi scheme facilitates working capital loan up to 10,000 to street vendors. Under this scheme regular repayment is given special  incentives and digital transactions get rewarded. The Scheme is available to all street vendors from urban areas who were selling products on or before March 24, 2020. The eligible vendors will be identified as per criteria including possession of certificate of vending or Identity Card issued by Urban Local Bodies. Vendors who have left for their native places due to covid 19 lock down will be eligible for the loan on their return.

As per the SVANidhi scheme, urban street vendors will be eligible to avail a working capital loan of up to `10,000 with tenure of one year and to be  repaid in monthly instalments. For this loan, no collateral will be taken by the lending institutions. On timely or early repayment, the vendors will be eligible for the next cycle of working capital loan with an enhanced limit. No prepayment penalty will be charged from the vendors for repayment before the scheduled date. The vendors, availing loan under the scheme, are eligible to get an interest subsidy @ 7%. The interest subsidy amount will be credited into the borrower’s account quarterly. Lenders will submit quarterly claims for interest subsidy for quarters ending  on June 30, September 30, December 31 and March 31 during each financial year. The onboarded vendors would be incentivised with a monthly cashback in the range of Rs 50 - Rs 100 for digital transactions. Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs) & SHG Banks can give credit assistance under this scheme.

In Tiruchirapalli, Punjab National bank gave Rs 10,000 each under SVANidhi scheme to 75 street vendors. Many other banks are also giving cash assistance under the scheme. Smt S MariammalSelvam said that she received Rs 10000 under the SVANidhi scheme. It will be useful for her to replenish her vegetable shop and start her business afresh.

Covid 19 pandemic lockdown has shown the resilience of local traders and with help from the government they can definitely bounce back to business and strengthen  their livelihood.

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