• UGI USER
  • Feb 13, 2024
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PM-SVANIDHI BOOSTED ANNUAL INCOME OF STREET VENDORS BY RS 23,000

Why in the news?

PM SVANidhi, launched in 2020, provided a working capital loan of Rs 10,000 to street vendors impacted by the COVID-19 lockdown.

source:mygov

Study Findings:

  • SBI study: 43% beneficiaries are women, 44% belong to OBC, 22% to SC/ST.
  • Persistency ratio increasing: 2nd loan/1st loan repaid.
  • Loans incentivized: 7% interest subsidy, cashback for digital transactions.
  • Public Sector Banks (PSBs) lead in loan sanctioning.
  • Demographics:
  • 65% borrowers aged 26-45.
  • Increased spending post-loan disbursement.
  • Behavioural shift towards digital transactions.
  • Impact on Jan Dhan Beneficiaries:
  • SVANidhi loans increase spending of Jan Dhan beneficiaries.
  • Promotes digital acceptability, migration to higher digital transactions.
  • City-wise Distribution:
  • Mega cities: Varanasi leads in active spenders (45%), followed by Bengaluru, Chennai, Prayagraj
About PM-SVANidhi

·    PM-SVANidhi is Micro-credit scheme launched by the Government of India for street vendors.

o   Central sector scheme under the Ministry of Housing and Urban Affairs.

o   Provides Working Capital (WC) loans of up to Rs 10,000 to urban street vendors.

o   Tenure of one year with monthly repayments.

·    Objectives:

o   Facilitate working capital loans.

o   Encourage regular repayment.

o   Promote digital transactions.

o   Provides collateral-free loans up to Rs 50,000 in incremental tranches

·    Eligibility:

o   Street vendors with ULB-issued Certificate of Vending or Identity Card..

·    Benefits:

o   Collateral-free loan: Rs. 10,000.

o   7% interest rebate till March 31, 2022.

o   Simple application process.

o   Cashback for digital transactions.

o   Easy loan status check on SVANidhi website.