Around Rs 3,628 crore has been sanctioned under PM SVANidhi or Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi scheme to more than 34 lakh street vendors since its launch, a senior government official said on Wednesday.
Speaking at an event organized to mark Civil Service Day, Department of Financial Services Secretary Sanjay Malhotra said Rs 3,288 crore has been disbursed to 31.19 lakh beneficiaries under the scheme.
The PM SVANidhi scheme was announced as part of the Atmanirbhar Bharat Abhiyan in May 2020 to help street vendors, who have been affected by the COVID-19 pandemic, resume their livelihood activities.
Under the scheme, a supplier could avail a working capital loan of up to Rs 10,000, followed by loans of Rs 20,000 and Rs 50,000 in the second and third tranches, respectively, upon repayment of the tranche(s). previous.
The loan amount is delivered directly to the beneficiaries by the lending institutions, such as banks, at a favorable rate of 7 percent.
Secretary of the Ministry of Housing and Urban Affairs (MoHUA), Manoj Joshi, defended the incentivization of digital transactions, saying that this needs to be considered so that it is further promoted and reliance on cash is reduced.
Joshi also urged banks to come up with small loans like PM SVANidhi.
There is a space available for small loans, he said, adding that banks must develop a model to take advantage of this segment.
He also said that the MoHUA is in the process of simplifying application forms so that a single application can be used for successive loans.
Giving a perspective on the scheme, Joshi said that the government recently launched the ‘Svanidhi se Samriddhi‘ in an additional 126 cities in 14 states and union territories.
‘Svanidhi se Samriddhi‘, an additional program of PM Svanidhi, was launched on January 4 last year in 125 cities in the first phase, covering around 35 lakh street vendors and their families.