Context:

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, which was launched in June amid the pandemic, is a micro-credit facility that provides street vendors a collateral-free loan of Rs 10,000 with low rates of interest for a period of one year.

About the Scheme

• Launched by: Ministry of Housing & Urban Affairs.
• The scheme aims at aiding the vendors at getting back on their feet financially.
• In the long term, it aims at establishing a credit score for the vendors as well as creating a digital record of their socio-economic status, so that they can avail the Central government schemes later.
• The scheme also attempts to formalise the informal sector of the economy and provide them safety nets and a means of availing loans in the future.
• Lending institutions: The lending institutions under the Scheme include Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, NBFCs, Micro Finance institutions and Self Help Group banks.