Mumbai: Small Industries Development Bank of India (Sidbi) on Friday said it has signed a pact with the Ministry of Housing and Urban Affairs for implementation of the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi).
PM SVANidhi is a central scheme fully funded by the ministry with the objective to facilitate a working capital loan to street vendors, thus enabling them to emerge self-reliant after the impact of the COVID-19 pandemic and revive their livelihood activity through formal access to credit.
SIDBI will be the implementation partner for the scheme and will set up a project management unit, a release said. It will give access to the scheme through a customised digital platform and will integrate the institutional ecosystem and build capacity value chain.
The development finance institution will facilitate credit guarantee to lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Microfinance institutions (MFIs) shall be on-boarded on the CGTMSE platform for the first time for the scheme, Sidbi said.
The platform shall also be integrated with the National Payments Corporation of India (NPCI) and the Unique Identification Authority of India (UIDAI) to enable the processes envisaged in the scheme, it said.
"We are pleased to play a role in this important national endeavour to help millions of street vendors across the country whose livelihood activities have been disrupted due to the coronavirus outbreak.
We shall carry out deep engagement with the entire lending community and urge them to actively participate to make this scheme a success," Sidbi Chairman and Managing Director Mohammad Mustafa said.
The scheme includes an initial working capital of up to Rs 10,000, interest subsidy on timely/early repayment at the rate of 7 per cent, monthly cashback incentive on digital transactions and higher loan eligibility on timely repayment of the first loan.
Under this scheme, commercial banks, regional rural banks, small finance banks, co-operative banks, non-banking financial companies, MFIs and self-help groups will be able to provide credit.
This scheme will target street vendors/hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas.
