PM Street Vendor’s AtmaNirbhar Nidhi (PM SANNidhi) Scheme
Tags : PM Street Vendor’s AtmaNirbhar Nidhi (PM SANNidhi) Scheme
Topic: Working capital loans
Why in the news?
Over 12,000 women street vendors in Coimbatore have got loans through the Central government scheme, PM Street Vendor’s Atma Nirbhar Nidhi, said Union Finance Minister Nirmala Sitharaman.
Source: The Hindu
About PM Street Vendor’s AtmaNirbhar Nidhi (PM SANNidhi) Scheme:
It was launched by the Ministry of Housing and Urban Affairs on June 01, 2020.
Its purpose is to provide affordable working capital loans to street vendors to resume their livelihoods that have been adversely affected due to the Covid-19 lockdown.
It is a micro-credit facility that provides street vendors with a collateral-free loan of Rs 10,000 with low rates of interest (below 12%) for a period of one year, aiding the vendors in getting back on their feet financially.
The duration of the scheme initially was until March 2022. It has been extended till December 2024, with a focus on enhanced collateral-free affordable loan corpus, increased adoption of digital transactions and holistic socio-economic development of the Street Vendors and their families.
All vendors who have been vending from or before March 24, 2020 and with a certificate of vending can avail the loan.
Benefits:
Vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly installments in the tenure of one year.
On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
There will be no penalty on early repayment of loan.
The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
The vendors can avail the facility of escalation of the credit limit on timely/ early repayment of loan.
Its implementation agency is the Small Industries Development Bank of India (SIDBI).
Small Industries Development Bank of India (SIDBI):
It was established under the special Act of the Parliament 1988.
It is the primary financial institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector.
Besides focussing on the development of the Micro, Small and Medium Enterprise sector, SIDBI also promotes cleaner production and energy efficiency.
SIDBI helps MSMEs in acquiring the funds they require to grow, market, develop and commercialize their technologies and innovative products.
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