SYLLABUS SECTION: GS III (SOCIAL SECTOR)
WHY IN THE NEWS?
Recently, Ministry of Housing and Urban Affairs has launched SVANIDHI MAHOTSAV which is a cultural festival for celebrating the success of PM SVANIDHI Scheme.
- SVANIDHI Mahotsav is a cultural festival for celebrating the success of Prime Minister SVANIDHI Scheme and recognizing beneficiary street vendor’s contribution towards Indian economy.
PM SVANIDHI SCHEME:
- PM SVANIDHI scheme, launch in 2020, facilitate working capital loans Upto RS.10,000 to street vendors to help them restart their businesses which were adversely impacting due COVID-19 pandemic
- It is a central sector scheme under MoHUA.
- It is the first comprehensive effort for financial inclusion of street vendors
- Small Industries Development Bank of India (SIDBI) is the implementing agency
- It is the fastest growing micro credit scheme.
- 9 lakh loans have been sanctions and 29.6 lakh loans amounting to RS. 2,931 crore have been disburse.
- The scheme facilitates collateral-free working capital loan, with a one-year tenure, of up to RS.10,000 to street vendors.
ISSUES WITH PM SVANIDHI
- About 12% of the loans disburse to street vendors under PM SVANIDHI scheme have been reports as non-performing assets (NPAs).
- Disbursement ratio in some areas remains low due to lack of awareness.
- Disparity among states in implementation
- Only 40% street vendors repaid working capital loan given.
Read more: UPSC CURRENT AFFAIRS
SOURCE: BUSINESS STANDARDS