CCEA Approved the Extension of The PM SVANidhi Scheme till December 2024

NATIONAL

The Cabinet Committee on Economic Affairs approved the extension of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme till December 2024 beyond March 2022. The Cabinet Committee was chaired by PM Narendra Modi.

The scheme was extended due to the impact of the pandemic-related stress on small businesses. Under this scheme, the street vendors can avail of the collateral-free loans to further expand their business and make them AtmaNirbhar. With this extension approval, the loan amount increased to Rs 8,100 crores.

The extension of the scheme will benefit around 1.2 crore people in urban India and the budget for the promotion of digital payments, including cashback to the vendors, has also been enhanced.

It will benefit in the following ways - the scheme would assist in institutionalizing the access to formal credit channels, provide an assured source of credit to help them plan their business expansion, increase the adoption of digital transactions, reduce the impact of potential NPAs on the Lending Institutions and providing holistic socio-economic upliftment for the Street Vendors and their families. 

As of April 25, 2022, 31.9 lakh loans have been sanctioned and 29.6 lakh loans amounting to Rs. 2,931 crores have been disbursed. The beneficiary Street Vendors have conducted more than 13.5 crore digital transactions and have been given a cashback of Rs.10 crore. An amount of Rs.51 crore has been paid as Interest Subsidy.

   Important points for the exam:

  • The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme was extended beyond March 2022 till December 2024.
  • The extension of the scheme was approved by the Cabinet Committee on Economic Affairs. It was chaired by the Indian Prime Minister.
  • The scheme was launched to provide an affordable Working Capital loan to street vendors to resume their livelihoods.
  • The extension of the scheme will benefit around 1.2 crore people in urban India. Under this scheme, the street vendors can avail of the collateral-free loans to further expand their business and make them AtmaNirbhar.
  • The committee also approved the budget for the promotion of digital payments, including cashback to the vendors, has also been enhanced.

   Facts to know:

  • The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched in June 2020.
  • PM SVANidhi scheme was implemented and monitored by the Ministry of Housing and Urban Affairs.
  • Working capital loan under this scheme: Rs. 10,000 - repayable in monthly instalments in the tenure of one year.

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