Street vendors comprise a major segment of the informal, urban economy. They ensure the wide availability of goods and services for city-dwellers. Known by different names like thelewala, hawkers, rehriwala, they cater by supplying several goods such as artisan products, textiles, eggs, street food, apparel, and more. However, the COVID 19 pandemic has severely impacted the interest and livelihood of these vendors. To bring some respite to these vendors and help them through this crisis, the Ministry of Housing and Urban Affairs launched the PM SVANidhi Yojana.
PM SVANidhi aims to help beneficiaries access a working capital loan and widen their business horizon.
Key Factors to Note
Here are some key factors to note about the PM SVANidhi Yojana:
- PM SVANidhi is a micro-credit facility that provides a working capital loan of up to Rs10,000 to street vendors
- The validity of the scheme remains until March 2022
- The loan can be repaid via monthly instalments within one year
Special Camps Conducted by Greater Warangal Municipal Corporation (GWMC)
The Greater Warangal Municipal Corporation (GWMC) conducted special camps over six days in April to provide loans to beneficiaries under the PM SVANidhi scheme. The camps were held at the Council Hall of the Greater Warangal Municipal Corporation (GWMC) headquarters.
GWMC had identified a large number of nearly 42,556 street vendors under its limits. According to an official statement, a total of 35,551 applied for the loans under the scheme and 27,497 of the applications were sanctioned. Of these, 26,050 beneficiaries had already received the funds.
Eligibility for the PM SVANidhi Yojana
The PM SVANidhi Yojana can be availed by several vendors, including:
- Hawkers, thelewalas, and rehriwalas who supply any kind of goods and services
- Street vendors belonging to surrounding pre-urban and rural areas
- Vendors who have their businesses operational on or before March 24, 2020
Eligibility to Other Central Government-Sponsored Schemes
As per a statement released by the GWMC officials, beneficiaries who got a loan under PM SVANidhi fund also availed access to other schemes driven by the Central government. Some of the schemes that were available include the Pradhan Mantri Shram Yogi Maandhan, Pradhan Mantri Jan-Dhan Yojana (PMJDY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
Visit the Camps: Requirements
When visiting the camps to apply for the PM SVANidhi scheme, street vendors had to carry some documents, including a copy of the Aadhaar Card, bank account passbook, and PAN card. Passport-size photos too had to be furnished. All these documents had to be submitted at the centre when applying for the PM SVANidhi scheme at the GWMC-held camp.
The lockdown had a deeply negative impact on the livelihood of daily wagers, including street vendors. GWMC’s special camp was a great initiative as it helped the needy and aided in the deeper penetration of the scheme. Street vendors typically work with a small capital that they acquire through informal sources on high-interest costs. Furthermore, a large number of them relied on their life savings to fight off the crisis. All of these factors made the PM SVANidhi yojana become a much-needed respite.
To know more about the PM SVANidhi scheme and related developments, visit Finserv MARKETS.