PM Street Vendor’s Atmanitbhar Nidhi (PM SVANidhi)

Context:

About 41% of the beneficiaries of the government’s loan scheme for street vendors – PM SVANidhi (PM Street Vendors’ AtmaNirbhar Nidhi) – are women, but southern states fare much better than those in the north. 

Relevance:

GS II- Government policies and interventions

Dimensions of the Article:

1. PM Street Vendor’s Atmanitbhar Nidhi (PM SVANidhi)
2. PM SVANidhi and SIDBI
3. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
4. Performance of the Scheme on 3-year Completion

PM Street Vendor’s Atmanitbhar Nidhi (PM SVANidhi)

• PM SVANidhi is a Special Micro-Credit Facility.
• PM SVANidhi was launched by the Ministry of Housing and Urban Affairs for providing affordable Working Capital loan to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown.
• Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
• The scheme promotes digital transactions through cash back incentives.
• Beneficiaries: 50 lakh Street Vendors.
• The Government of India has extended the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme beyond March, 2022 with the following provisions:
  • Extension of lending period till December 2024;
  • Introduction of 3rd loan of upto ₹50,000 in addition to 1st & 2nd loans of ₹10,000 and ₹20,000 respectively.
  • To extend ‘SVANidhi Se Samriddhi’ component for all beneficiaries of PM SVANidhi scheme across the country

The eligible vendors are identified as per following criteria:

• Street vendors in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs);
• The vendors, who have been identified in the survey but have not been issued Certificate of Vending / Identity Card;
• Street Vendors, left out of the ULB led identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC); and
• The vendors of surrounding development/ peri-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC.

PM SVANidhi and SIDBI

• Small Industries Development Bank of India (SIDBI) is the Implementation Agency for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)
• SIDBI will also manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• SIDBI will leverage the network of lending Institutions like Non-Bank Finance Companies (NBFCs), Co-operative Banks etc., for the Scheme implementation.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

• The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.
• Beneficiaries: New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions etc., are eligible.
• Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs 200 lakh per eligible borrower are covered under the guarantee scheme provided they are extended on the project viability without collateral security or third-party guarantee.

Performance of the Scheme on 3-year Completion:

Beneficiary Demographics:

• In 10 states and UTs, primarily in the Southern and North-East regions, women constitute the majority of the beneficiaries.
• Kerala is an exception as it has implemented its own programs like Kudumbashree, which promotes women’s empowerment.
• The social fabric of these regions, such as matrilineal societies in Meghalaya, contributes to women outnumbering men as beneficiaries.
• In Meghalaya, where the youngest daughter inherits property and women are involved in operating enterprises, the scheme has had a significant impact.

Targeting Women’s Self-Help Groups (SHGs):

• In certain states, the scheme has specifically targeted women’s self-help groups (SHGs) as beneficiaries.
• Andhra Pradesh’s MEPMA (Mission for Elimination of Poverty in Municipal Areas) was already collaborating with SHGs and included them as beneficiaries of the scheme.

-Source: The Hindu