PM SVANidhi: Advancing Financial Inclusion for Street Vendors
Summary
The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme has significantly advanced financial inclusion for urban micro-entrepreneurs by providing collateral-free working capital loans.
●Launched by the Ministry of Housing and Urban Affairs (MoHUA), the scheme facilitates initial loans of ₹10,000, with enhanced tranches of ₹20,000 and ₹50,000 upon timely repayment.
●It incentivizes digital transactions through cashback and builds credit profiles for street vendors, integrating them into the formal financial system.
●The initiative also encompasses the 'SVANidhi se Samriddhi' program, linking vendors' families to broader socio-economic welfare schemes, thereby ensuring holistic development and economic resilience.
Financial Inclusion & Schemes
This sub-topic has appeared in 2 UPSC Prelims questions.
PM SVANidhi is a Central Sector Scheme fully funded by the Ministry of Housing and Urban Affairs (MoHUA), designed to empower street vendors affected by the pandemic.
●It stands out by offering collateral-free working capital loans in escalating tranches (₹10,000, ₹20,000, and ₹50,000) to encourage credit discipline.
●A crucial feature is the 7% per annum interest subsidy credited quarterly through Direct Benefit Transfer (DBT) for timely repayments.
●Furthermore, it promotes the digital economy by offering cashbacks up to ₹1,200 annually for digital transactions.
●The Small Industries Development Bank of India (SIDBI) serves as the technical partner for implementation, managing the credit guarantee trust fund (CGTMSE). > The scheme uniquely combines micro-credit access with digital literacy and formal credit history generation for the unorganized sector.
Factual Pointers
Practice · 1 question
Consider the following statements regarding the PM SVANidhi scheme:
1. It is a Centrally Sponsored Scheme implemented by the Ministry of Finance.
2. It provides an interest subsidy of 7% per annum on timely repayment of loans.
3. SIDBI is the technical partner for the implementation of this scheme.
How many of the above statements are correct?
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