What is PM SVANidhi Scheme?
The government established the PM Street Vendor’s AtmaNirbhar Nidhi (PM Svanidhi) initiative in June 2020 to give financing for working capital to street vendors. Under this program, street vendors can get collateral-free loans with low-interest rates for a period of one year.
The lockdowns caused by the COVID-19 pandemic affected everyone’s livelihoods, particularly those of street vendors. They typically have a moderate capital basis and their savings and capital base would have been consumed during the lockdown. Street vendors play an essential role in the city’s informal economy by ensuring that city people have access to services and goods at reasonable prices. As a result, there was an immediate need to supply them with loans for working capital so that they could restart their business.