Govt sets fresh target of 63 lakh loans for street vendors by year-end
- The Union Housing and Urban Affairs Ministry has set a new target for its loan scheme (PM SVANidhi) for street vendors.
- Target: 63 lakh new loans in less than six months till December this year.
- Till now, as per the PM SVANidhi website, 51.45 lakh loans, amounting to Rs 6,623.36 crore, had been disbursed to 39.07 lakh beneficiaries.
Who is a Street Vendor/hawker?
- Any person engaged in vending of goods or merchandise of daily use or offering services to the public from a temporary built up structure or by moving from place to place.
- The goods supplied by them include vegetables, fruits, ready-to-eat street food, textile, apparel, artisan products, books/stationary etc.
- The services include barber shops, cobblers, pan shops, laundry services etc.
- Around 49.48 lakh street vendors have been identified in India.
- Uttar Pradesh has the maximum at 8.49 lakh, followed by Madhya Pradesh at 7.04 lakh.
- No street vendor has been identified in Sikkim.
PM-SVANidhi
- It is a Central Sector Scheme under the Ministry of Housing and Urban Affairs
- Objectives
- To facilitate working capital loan
- To incentivize regular repayment
- To reward digital transactions
- Introduction of 3rd term loan of up to ₹50,000 in addition to 1st & 2nd loans of ₹10,000 and ₹20,000 respectively.
- The loans would be without collateral.
- Lending Agencies
- Microfinance Institutions
- Non-Banking Financial Company
- Self Help Groups
- The Scheme is available to all street vendors engaged in vending.
- On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries.
Prelims Takeaway
- PM-SVANidhi
- Self Help Groups
- NBFCs