Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of MSMEs has signed a Memorandum of Understanding (MoU) with Ministry of Housing and Urban Affairs for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi).
SIDBI shall be the implementation partner and in this capacity, it shall set up a Project Management Unit, power access to scheme through a customized digital platform, integrate the institutional ecosystem and build capacity of value chain. SIDBI shall also facilitate credit guarantee to lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Microfinance Institutions (MFIs) shall be onboarded on CGTMSE platform for the first time for the scheme. The platform shall also be integrated with National Payments Corporation of India (NPCI)and Unique Identification Authority of India (UIDAI) to enable the processes envisagedin the scheme.
Speaking on the occasion Shri Mohammad Mustafa, IAS, Chairman and Managing Director of SIDBI said that “Our Mission Swavalamban takes forward the mandate of inducing entrepreneurship culture amongst youth, unserved/ underserved segments and geographies including those at the bottom of pyramid. We have been laying emphasis on digital tools and platforms to strengthen Micro and Small Enterprises ecosystem through improved transparency and speed of transactions. PSB Loans in 59 minutes was another such project led by SIDBI to change the credit access dynamics. Access to CGTMSE and National Credit Guarantee Trustee Company (NCGTC)platforms has been digitized, simplified and made available to a wider set of lenders. We are pleased to play a role in this very important national endeavor 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.”
PM SVANidhi is a Central Scheme fully funded by Ministry of Housing and UrbanAffairs with the objective to facilitate working capital loan to street vendors thus enabling them to emerge self-reliant after impact of COVID-19 pandemic and revive their livelihood activity through formal access to credit.
The salient features of the scheme include initial working capital of up to Rs. 10,000, interest subsidy on timely/early repayment at the rate of7 percent, monthly cash-back incentive on digitaltransactions and higher loan eligibility on timely repayment ofthe 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 thevendors of surrounding peri-urban and ruralareas.
The MoU was signed by Shri Sanjay Kumar, Joint Secretary, Ministry of Housing and Urban Affairs (MoHUA) and Shri V. Satya Venkata Rao, Deputy Managing Director of SIDBI in the presence of Hon’ble Minister of State (Independent Charge), MoHUA, Shri Hardeep Singh Puri. The partnership aligns with SIDBI Vision 2.0 which envisions synergizing with innovative, inclusive and impact-oriented initiatives with priority to livelihood and micro enterprises.