Government scheme: In Indian cities, street vending is an important part of the economy. One may claim that it is the largest informal sector that provides for the urban poor’s livelihood.
As part of the Deendayal Antyodaya Yojana- National Urban Livelihood Mission (DAY-NULM), which is a Centrally Sponsored Scheme, the Indian government gives “Support to Urban Street Vendors” (SUSV).
The initiative attempts to help urban street vendors by providing proper premises, institutional finance, social security, etc.
Street Vendors Atma Nirbhar Nidhi
Also, on June 1, 2020, the Ministry of Housing and Urban Affairs will start a Central Sector Scheme called Prime Minister Street Vendors Atma Nirbhar Nidhi, or PM SVANidhi for short.
The goal of the program was to help street vendors, whose businesses had been affected by the COVID-19 Pandemic. Get back on track by giving them affordable working capital loans of up to 10,000/-.
So, the Ministry started “SVANidhi se Samriddhi” in 125 Urban Local Bodies chosen for saturation in the first phase on January 4, 2021. This was done to help improve the social and economic lives of street vendors.
Programs linked with PM SVANidhi Scheme
This program’s goal is to connect people who get help from the PM SVANidhi Scheme and their families to certain central government welfare schemes, such as the Pradhan Mantri Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana, Pradhan Mantri Jan Dhan Yojana, Registration under Building and Other Constructions Workers (Regulation of Employment and Conditions of Service) Act (BOCW), Pradhan Mantri Shram Yojana. Yogi Maandhan Yojana, the One Nation One Ration Card (ONORC) portability benefit of the National Food Security Act (NFSA), the Janani Suraksha Yojana, and the Pradhan Mantri Matru Vandana Yojana are all programs that help people (PMMVY).
A huge change in the economic and social conditions of city street vendors
“SVANidhi se Smariddhi” Program, as of July 30, 2021, the socio-economic profiles of 5.3 lakh PM SVANidhi beneficiaries and their family members were completed.
Under the Aatma Nirbhar Bharat Abhiyan package, the Ministry has also been running the Pradhan Mantri Street Vendors’ Atma Nirbhar Nidhi (PM SVANidhi) Scheme since June 1, 2020.
The government helps street vendors get a loan for working capital of up to 10,000/- for a period of one year.
In fact, if they pay on time and early, they can get an increased working capital loan of up to 20,000/- in the second tranche and up to 50,000/- in the third tranche. The Scheme offers incentives in the form of an interest subsidy of 7% per year if a loan is paid back on time, and cash-back of up to 1,200/- if a certain number of digital transactions are made.
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As of July 30, 2021, there had been 43,300,000 loan applications. Out of these, 25.3% have been approved for loans and 22.8% have been paid out.
As the PM SVANidhi scheme brings street vendors into the mainstream financial system through loans and digital payments, the government wants to formalise what it knows about this sector and, based on what it knows, include them in different schemes.
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