Ministry of Housing & Urban Affairs

PM SVANIDHI SCHEME

Posted On: 07 AUG 2023 1:00PM by PIB Delhi

Ministry of Housing and Urban Affairs (MoHUA) has launched Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme on June 01, 2020 with the aim to facilitate collateral free working capital loan to street vendors to restart their businesses, which were adversely impacted by the COVID-19 pandemic. The scheme has the following objectives;

  1. Facilitate collateral free working capital loan upto ₹10,000, of 1 year tenure, with enhanced loan of ₹20,000 and ₹50,000 in the second and third tranches respectively, on repayments of earlier loans.
  2. Incentivize regular repayment, through interest subsidy @ 7% per annum; and
  3. Reward digital transactions, by way of cash back upto ₹1,200 per year.

(b): Under PM SVAnidhi Scheme, initially working capital loan of upto ₹ 10,000 was introduced. Considering requirement for enhanced loan, 2nd loan upto ₹ 20,000 w.e.f. 9.04.2021 and 3rd loan upto ₹ 50,000 w.e.f. 1.06.2022 were also introduced.

(c) & (d): No such proposal has been received by the Ministry. However, the Ministry has revised the cash back scheme w.e.f. 1st February, 2023 which provides cashback of ₹ 1 per digital transactions subject to maximum of ₹ 100 in a month i.e. ₹ 1200 in a year.

(e) & (f): As on 02.08.2023, a total of 2,62,811 loans have been sanctioned under the PM SVANidhi Scheme in state of Andhra Pradesh. The total number of loans sanctioned during the Financial Year 2022-23 and 2023-24 (upto 02.08.2023) under the Scheme in the state of Andhra Pradesh are 49,534 and 12,097 respectively.

State/ULBs are responsible for identification of eligible street vendors and mobilisation of new applications under the scheme. However, in order to increase the number of beneficiaries, Ministry is taking initiatives which includes, inter-alia conduct of regular review meetings with States/UTs/ULBs/Lending Institutions, awareness campaign like broadcasting of radio jingles, Television advertisements and newspaper advertisements are being carried out from time to time. States/UTs have also been provided Information, Education and Communication (IEC) material in local languages regularly for outreach and dissemination of the benefits to the vendors to avail the benefits of the scheme.

This information was given by the Minister of State for Housing & Urban Affairs, Shri Kaushal Kishore, in a written reply in the Rajya Sabha today.

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RJ



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