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).