New Delhi: The Centre on Wednesday approved the continuation of the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme till December 2024, according to an official statement. The approval was given by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, the statement said, adding that through the scheme, affordable collateral-free loans are given to street vendors.
"The scheme had envisaged to facilitate loans for an amount of Rs 5,000 crore. Today's approval has increased the loan amount to Rs 8,100 crore, thereby providing the street vendors working capital to further expand their business and making them AtmaNirbhar," according to the statement. The budget for the promotion of digital payments, including cashback to the vendors, has also been enhanced. The approval is expected to benefit nearly 1.2 crore people in urban India, the Centre said.
The beneficiary street vendors have carried out more than 13.5 crore digital transactions and have been given a cashback totalling Rs 10 crore. An amount of Rs 51 crore has been paid as interest subsidy. Significant achievements have already been made under PM SVANidhi. As on April 25, 31.9 lakh loans were sanctioned and 29.6 lakh loans amounting to Rs 2,931 crore were disbursed, according to the statement. "As regards second loan, 2.3 lakh loans have been sanctioned and 1.9 lakh loans amounting to Rs 385 crore have been disbursed," the statement said. The Centre said the extension of the scheme was necessitated as the circumstances that led to its launch in June 2020 -- the COVID-19 pandemic and the related stress on small businesses -- have not fully retracted.
"The extension of lending till December 2024 would assist in institutionalising the access to formal credit channels, provide an assured source of credit to help them plan their business expansion, increasing the adoption of digital transactions, reducing the impact of potential NPAs on the lending institutions and providing holistic socio-economic upliftment for the street vendors and their families," the statement said.
PTI
