Why in the News?
The Union Cabinet has approved the restructuring and extension of the Prime Minister Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) scheme.
About PM SVANidhi Scheme:
- Launch: June 1, 2020, as Central Sector Scheme fully funded by the Ministry of Housing and Urban Affairs (MoHUA).
- Purpose: To provide affordable credit to street vendors hit hard by the Covid-19 pandemic and help them restart/expand their businesses.
- Target Group: Urban street vendors in statutory towns and peri-urban/rural areas.
- Extension: Restructured and extended up to March 31, 2030.
- Beneficiaries: 1.15 crore vendors, including 50 lakh new ones.
Key Features:
- Collateral-free Loans (incremental):
- 1st tranche: ₹15,000 (earlier ₹10,000).
- 2nd tranche: ₹25,000 (earlier ₹20,000).
- 3rd tranche: ₹50,000.
- Digital Empowerment:
- Timely 2nd loan repayment → eligibility for UPI-linked RuPay Credit Card (for emergent business/personal needs).
- Digital cashback incentives up to ₹1,600 on retail & wholesale transactions.
- Capacity Building:
- Training in entrepreneurship, financial literacy, digital skills, and marketing.
- Food safety & hygiene training for street food vendors (with FSSAI partnership).
- Implementation:
- Jointly by MoHUA & Department of Financial Services (DFS).
- DFS facilitates loans & credit cards through banks/financial institutions.
- Wider Goals:
- Promote financial inclusion & digital adoption.
- Enable vendors’ business expansion & sustainable growth.
- Contribute to inclusive urban economic development.
| [UPSC 2011] Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are:
1. Credit facilities 2. Savings facilities 3. Insurance facilities 4. Fund Transfer facilities Options: (a) 1 only (b) 1 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4* |
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