PMSVANidhi was launched by Ministry of Housing and Urban Affairs on June 1st, 2020, a special micro credit scheme for providing affordable Working Capital loan to street vendors to resume their livelihoods that have been affected due to Covid-19 lockdown.
Under this Scheme, the street vendors, who were vending within the limits of an urban local body as on 24th March, 2020, can avail working capital loan of up to ₹10,000, which is repayable in monthly instalments within the tenure of one year.
On timely and early repayment of loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer (DBT) on quarterly basis. The scheme promotes digital transactions through cash back incentives up to an amount of ₹100 per month. The vendors can avail the facility of escalation of the credit limit on timely/ early repayment of loan.
When the COVID-19 pandemic hit the state, the timely launch of PM-SVANidhi by the Hon’ble Prime Minister of India has helped many street vendors in their most distressed time. 8616 Street Vendors had been able to resume their business that had come to a pause during the pandemic. The collateral free loan of Rs 10,000 has surely been a blessing not only to the street vendors but to their family members as well.
The Scheme has enhanced the livelihood, improved financial condition and saved many from hunger during these difficult times.
Hon’ble Chief Minister Manipur,Shri N. Biren Singh has been leading from the front and actively monitoring the progress since the launch of the scheme. It may be recalled that, Hon’ble Chief Minister had disbursed 4186 numbers of loans in 3 (three) phases:
- 1st Phase held on: 25th August 2020, 368 nos. of sanctions.
- 2nd Phase held on 17th September 2020, 803 nos. of sanctions.
- 3rd Phase held on 7th December 2021, 3015 nos. of sanctions.
This concerted effort by the State Government, led by Hon’ble Chief Minister Shri N. Biren Singh will go a long way in boosting the economic activities and financial health of the State and more particularly, the large section of the vending community, who are mostly women.
PMSVANidhi Scheme have been empowering women street vendors, 94% of the loans disbursed were to women street vendors in the state. The street vendors have expressed appreciation for the hassle free application and disbursement of loan and for the support they have been given by both the Department and Banks under this scheme. The scheme has instilled self-confidence in street vendors especially women vendors and it is yielding qualitative changes in entrepreneurial behavior.
The scheme was extended in the district headquarters of all hill districts of Manipur on 29th December, 2020 considering the issues and challenges faced by street vendors of hill districts during the COVID crisis. The loan under PM-SVANidhi will help promote financial recovery of street vendors who suffered massive losses during the lockdown period and help them become self-reliant and self-sufficient for the future.
The Mission Directorate in co-ordination with Urban Local Bodies and Financial Institutions organize camps at ULB level regularly. Door to Door campaigns, phone calls to street vendors are regularly made encouraging them to repay and avail for 2nd tranche loan under the scheme.
Till date, 7425 street vendors are digitally onboarded. Camps are being organized at Bank branches in close co-ordination with ULBs for creation of awareness of digital payment to the street vendors. The progress of PM-SVANidhi is reviewed by SLBC Sub-Committee on Credit Disbursement and Financial performance of Banks.
The scheme aims to empower street vendors by not only extending loans to them, but also for their holistic development and economic upliftment. Street vendors from the State have poured in their appreciation towards the Government. Among the many testimonies received, Leishangthem Premabati from Lilong bazar appreciated the Government and Department for the hassle free loan which helped resume her business and improved her financial condition during COVID-19 crisis.
From Jiribam District, Thokchom Sobita & Khwairakpam Bimola expressed that the scheme has been a great support to their small businesses and have thanked the Hon’ble Prime Minister of India, Hon’ble Chief Minister of Manipur and Jiribam Municipal Council for making it possible for them to avail loan.
Mayanglambam Victoria from Kakching availed the 1st tranche loan of PM-SVANidhi. The loan not only helped her but also her family during the COVID-19 pandemic. After repaying 1st tranche, she is now expecting the 2nd tranche of loan from the Government, likewise many other street vendors appreciated the scheme.
Manipur was announced as the top performing state among Hilly Region and North Eastern States category during Dec, 2020. To achieve maximum coverage of eligible beneficiaries, regular meetings with banks are being taken up and necessary measures are also taken up to increase the performance. A dedicated team under the State Mission Director is continuously working in co-ordination with the District Headquarters, Banks and ULBs to make the scheme reach every eligible street vendors in the State. Special efforts are being made for taking up awareness activities in all the 27 ULBs and all Hill Districts to make this benefit accessible to all deserving individual engaged in vending.
PM-SVANidhi scheme has earned a positive outcome in the State. The successful implementation of PM-SVANidhi scheme will help in effectively addressing the economic hardship faced by the Street Vendors and making them an important stakeholder in the economic growth of the State.