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PM SVANidhi Scheme: Characteristics, Objectives, Background And More Details

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Prime Minister Street Vendor’s AtmaNirbhar Nidhi is the acronym for PMSVAN. It is a government-run programme that began in June 2020. Its goal would be to provide microfinance services to street sellers who have been affected by the COVID-19 outbreak.

PM SVANidhi’s Key Characteristics

It’s a government-run scheme.
It will give street sellers low-interest working capital loans as a result of the new coronavirus outbreak.
It will be put in place until March 2022.
An initial operating capacity of up to Rs. 10,000 would be supplied to vendors.
When a vendor repays a loan early or on schedule, he or she will receive a 7% interest subsidy.
On electronic payments, a periodic cash-back incentive is available.
Cashback in the region of Rs. 50-100 every month.
If a vendor pays back the very first loan, he or she has a good chance of being approved for a larger loan.
To obtain the loan, a seller does not need to present any collateral security.

PM SVANidhi’s Objectives

To provide merchants with access to low-cost working capital loans so that they can restart their livelihood operations following the nationwide shutdown (due to the pandemic.)
To encourage regular loan payback by provisions such as cashback, greater loans on subsequent demands, and so on.
To encourage digitization by paying suppliers who choose to repay debts digitally.

The Scheme’s Background

The COVID-19 outbreak and subsequent lockdowns have had a negative influence on street sellers’ businesses.
They normally have a limited capital foundation, which they may have depleted during the lockdown.
As a result, giving street sellers access to cash flow will help them reclaim their businesses.

PM SVANidhi’s Lending Institutions

Non-Banking Financial Institutions
Banks in Rural Areas
Banks for Self-Help Groups (SHGs)
Banks that work together
Institutions of Microfinance
Commercial Banks with a Schedule

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