INTRODUCTION
PM SVANidhi is a central sector micro-credit scheme launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA) to support street vendors. The scheme provides a collateral-free working capital loan of Rs.10000/- and thereafter loans of Rs. 20000/- and Rs. 50000/- at a 7% interest rate. The scheme aims at enhancing the use of digital modes of payment among the street vendors thus boosting the digitalization in the country. To make the street vendors use the digital transactions, they are provided cashback of up to Rs. 100 per month. Vendors may use thios loan to purchase raw materials, upgrade their equipment or even rent a better place for their stall placement.
How to Take Benefit from this scheme:-
Street vendors are eligible for this scheme and to apply for PM SVANidhi they may approach their local urban local bodies(ULB) or they may login to PM SVAnidhi website.
KEY BENEFITS OF PM SVANidhi:-
- Collateral-free loans: To avail the benefit of this scheme beneficaiary need not identify any assets as security.
- Interest subsidy: The Government subsidizes a portion of interest on the loan.
- Easy repayment: The scheme also provides flexible repayment facilities to suit the individual needs.
- Credit History building: A beneficiary may develop accredit history by timely payment which will ultimately make it easier to apply for loans in future.
- Motivation for digital transaction: Government provides monetary benefits for using digital payment methods.
ELIGIBLITY FOR PM SVANidhi:-
To be eligible for the benefits of PM SVANidhi, a person must:
- be a street vendor engaged in vending activities in urban areas.
- Possess a valid ID proof like a Voter ID card, Aadhar card, or driving license.
- Have been affected by the COVID-19 Pandemic.
APPLICATION PROCEDURE: –
A person may apply for availing the benefits of this scheme by visiting the official website:
https://www.pmsvanidhi.mohua.gov.in/
Step-by-step procedure for application procedure:-
1. Visit the official website of PM SVANidhi and click on “Apply Online”.
2 . Using your Aadhar card and mobile number register yourself on the portal.
3. The system will direct you to the application form after registration. Fill all the required details in the application form.
4. Upload necessary documents, such as Address proof, ID Proof, and photographs.
5 . Submit the application form after filling in all the details and uploading the required documents.
IMPACT OF PM SVANidhi:-
-
PM SVANidhi is a great help for street vendors as they grow their businesses and continue their livelihoods.
The following are some impacts of the scheme on street vendors:
1. Increase their businesses: Vendors can restart their businesses with the loan received under this scheme. After the COVID pandemic, the vendors were under trauma to bring back their businesses. That time PM SVANidhi provided great support to vendors.
2. Uplift the financial stability: Regular income and savings helped the street vendors to gain financial stability.
3. Increase their income: By using Digital payment methods and growing their businesses, vendors can consequently increase their income.
4. Confidence build-up: Through this scheme, the Government supports the beneficiaries to make their dream come true, which ultimately makes the vendors confident.
CHALLENGES AND WAY FORWARDS:-
Though PM SVANidhi is a successful scheme, It is facing some challenges in its way:
1. Awareness: Many street vendors don’t know about this Government scheme and thus they are not able to get benefits.
Increased awareness programs at the grassroots level are needed for the advertisement of this scheme.
2. Document issue: It is difficult for some vendors especially those without identity cards and vending certificates to produce the required documents for the application.
The government should help to get the required documents from concerned agencies without much delay.
3. Digital knowledge: A major portion of street vendors don’t know about digital transactions and they cannot afford smartphones and the internet to apply PM SVANidhi.
The government should think of organizing camps at various locations to facilitate poor street vendors to apply for PM SVANidhi and also to educate them.
The government should work together with Urban local bodies, NGOs, and local public to cut out these challenges in the way of success of this scheme.
CONCLUSION:-
In conclusion, the PM SVANidhi scheme has uplifted the livelihood of street vendors in India through such a wonderful initiative. The government gives financial support to vendors to restructure their businesses and improve their standard of living through PV SVANidhi. Easy and collateral-free loans are a big support to vendors. The stress of Digital payment mode boosts vendors to accept modern business methods. The current business practices ultimately make sure that vendors are connected with current market supply and demand and remain competitive. PM SVANidhi also gives hope, dignity, and opportunity to street vendors to grow their businesses and finally contribute to India’s growing economy.PM SVANidhi contributes to India’s Vision of Atmanirbhar Bharat (Self-reliant India) and helps in sustainable growth and economic upliftment.
Though there are various challenges in implementation of this scheme, Government is striving hard to handle these challenges and come out with flying colours.