Context (PIB): A recent study by SBI has hailed the PM SVANidhi Scheme’s performance, stating that 43% ofbeneficiaries are women street vendors.
About the Scheme
It is amicro-credit scheme launched by the central government for urban street vendors.
The scheme was launched during the COVID-19 pandemic 2020 by the Ministry of Housing and Urban Affairs (MoUHA) and provides collateral-free loans up to Rs 50,000 for eligible street vendors in incremental tranches: first tranche of Rs 10,000, second tranche of Rs 20,000 subject to repayment of the first tranche, and third tranche of Rs 50,000 upon repayment of the second loan.
PM SVANidhi has helped promote inclusive entrepreneurship and proven to be a gender equaliser.
How did the scheme ensure Inclusive Entrepreneurship?
PM SVANidhi has seamlessly connectedmarginalisedurban micro-entrepreneurs, breaking down community barriers.
Almost 75% of loan beneficiaries come from the non-general category.
OBCs account for 44% of total disbursement, while SCs/STs account for 22%
65% of the borrowers in PM SVANidhi are in the age group of 26-45.
Behavioral Shift for Digital Acceptability: PM SVANidhi loans, when given to Jan Dhan beneficiaries, migrate at least 9.5% of people doing less than 10 transactions into higher digital transactions.
