Street vendor scheme a hit, government plans next phase

Street vendor scheme a hit, government plans next phase

Subject: Governance

Context: As part of the new drive, between January 4 and 22, over 10 lakh street vendors across the country who have availed of the Rs 10,000 loan will be trained in using digital payments.

Concept:

• The ‘Main bhi Digital’ (me too digital )drive has been prompted by the success of the Prime Minister Street Vendor’s AtmaNirbharNidhi (PMSVANidhi) scheme, launched in the wake of the Covid-19 lockdown, to provide vendors microcredit.
• Encouraged by the response to PMSVANidhi, the government has also launched its first-ever official socio-economic survey of vendors, to bring them under schemes such as the Pradhan MantriJeevanJyotiBimaYojana, Pradhan Mantri Suraksha BimaYojana, Jan-DhanYojana, Building and Other Construction Workers Act, Pradhan MantriShram Yogi MaandhanYojana, Pradhan MantriMatriVandanaYojana, and others.

PM SVANidhi

• It is a special micro-credit facility plan to provide affordable loan of up to ₹10,000 to more than 50 lakh street vendors, who had their businesses operational on or before 24 March 2020.
• The scheme is valid until March 2022.
• Small Industries Development Bank of India is the technical partner for implementation of this scheme.
• It will manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises.

Loans under the scheme:

• Under the scheme, vendors can avail working capital loan of up to ₹10,000, which is repayable in monthly instalments within one year.
• On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer (DBT) on six-months basis.
• There will be no penalty on early repayment of loan.

Eligibility:

• The scheme is applicable to vendors, hawkers, thelewalas, rehriwalas, theliphadwalas in different areas/contexts who supply goods and services. Street vendors belonging to the surrounding peri-urban/rural areas are also included.