Modi government sanctions over 7.8 lakh loans under PM SVANidhi scheme

Modi government's special micro-credit facility PM SVANidhi-Pradhan Mantri Street Vendor’s Atma-Nirbhar Nidhi launched to help small vendors hit due to the Covid 19 onslaught, has disbursed 788,438 loans out of the 1,434,436 that have been sanctioned, according to a government release. The government has received 2,733,497 applications. 

Vendors who left for their native places due to Covid-19 lock down are eligible for the loan on their return. The government has made the provision for hassle-free loans by allowing downloading of application form at any common service centre or municipal office or by going to a bank.  

Banks are going to the doorsteps of people to provide the loans and help them start their ventures, the release said.  

To ensure fast implementation of the scheme with transparency, accountability and consistency, a digital platform with web portal/ mobile app has been developed by the government to administer the scheme with end-to-end solution. 

The IT platform integrates the web portal/ mobile app with UdyamiMitra portal of SIDBI for credit management and PAiSA portal of MoHUA to administer interest subsidy automatically.  

The scheme is also incentivising digital transactions i.e. receipts/ payments using digital means including UPI, QR-codes of payment aggregators and RuPay debit cards by the street vendors through monthly cash back.  

The scheme has helped vendors hit by the Covid-19 pandemic lockdown, to bounce back and restart their work. “Most of the street vendors who were given loan through the SVANidhi scheme are repaying their loan on time proving that small-time borrowers do not compromise on their honesty and sincerity,” the release said.  

Urban Local Bodies are playing pivotal role in the implementation of the scheme, the release said.

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They are leveraging the network of all stakeholders namely Street Vendor’s Associations, Business Correspondents (BCs)/ Agents of Banks/ Micro-Finance Institutions (MFIs), Self-Help Groups (SHGs) and their federations, Digital Payment Aggregators like BHIM, PayTM, GooglePay, BharatPay, AmazonPay, PhonePe etc. in administering the scheme successfully.