Empowering Street Vendors: The Impact of PM SVANidhi in Tumkur
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Synopsis
The PM SVANidhi Scheme is transforming the lives of street vendors in Tumkur, Karnataka, offering them invaluable support through micro-loans. Vendors like Srinivas have significantly improved their business operations and financial stability. With collateral-free loans, the initiative aims to empower over 50 lakh vendors across the nation.
Key Takeaways
- Micro-loans significantly boost vendor businesses.
- The scheme offers collateral-free loans with flexible repayment.
- Srinivas' success illustrates the scheme's positive impact.
- Eligibility extends to vendors without a certificate.
- Government aims to support 50 lakh vendors nationwide.
Tumkur, April 9 (NationPress) Beneficiaries of the Central government's Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme in Karnataka's Tumkur district are witnessing a notable enhancement in their quality of life, thanks to the assistance provided by this initiative.
Srinivas, a vegetable vendor in the district, shared his story with IANS, detailing how the scheme has revolutionized his business and financial situation.
Initially, he applied for a loan under the PM SVANidhi Scheme and received Rs 10,000. With the profits from his vegetable business, he repaid the loan in monthly installments. He was subsequently granted a second loan of Rs 20,000, which allowed him to further expand his business. Recently, he was approved for a third loan of Rs 50,000, which has greatly enhanced his business operations.
"Currently, my business has improved significantly," he stated.
Before receiving financial support through the PM SVANidhi Scheme, Srinivas had to depend on local lenders who charged exorbitant interest rates. He emphasized that his life took a positive turn once the government started to support his business.
Srinivas recounted that officials from the municipality had initially visited and verified his documents before disbursing the funds under the PM SVANidhi Scheme. As part of the scheme's requirements, he was instructed to prominently display a signboard in front of his vegetable shop, which he has complied with.
The PM SVANidhi Scheme, which was launched by the Ministry of Housing and Urban Affairs in June 2020, is a micro-credit initiative aimed at assisting street vendors. It offers collateral-free loans with flexible repayment terms, making it easier for small traders to access financial support.
The scheme is divided into three loan cycles: Rs 10,000 for the first cycle, Rs 20,000 for the second, and Rs 50,000 for the third. Repayment terms are flexible, and interest subsidies are available until March 2028. The government aims to extend benefits to approximately 50 lakh vendors nationwide.
To qualify for the scheme, street vendors must have been operating in urban areas on or before March 24, 2020, selling items such as fruits, vegetables, and ready-to-eat street food, or providing services like barbershops and laundry. Even vendors without a vending certificate are eligible to apply and can obtain a provisional certificate after a local inquiry.
