Wheels of Fortune: 4.79 Lakh Gujarat Vendors Roll Ahead with PM SVANidhi

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Key Milestone

Five years after its rollout, the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) program has changed the lives of 4.79 lakh street vendors across Gujarat, helping them become self-sufficient and resilient players in the urban economy.

Impactful Progress

Rolling out in June 2020, PM SVANidhi sought to disburse collateral-free working capital loans to street vendors affected most by the pandemic, facilitating their revival and growth in business.

Vendors were issued incremental loans of Rs 10,000, then Rs 20,000, up to Rs 50,000, at a subsidized rate of 7%. Timely repayment opened up higher levels of loans and incentives for digital transactions.

The scheme encouraged digital payments through cashback incentives, resulted in financial inclusion, and helped reduce cash transactions.

Inclusive Growth

The scheme has been praised for its contribution to encouraging inclusive entrepreneurship, with a notable proportion of beneficiaries belonging to marginalized communities and an impressive 43% being women.

Public sector banks, particularly the State Bank of India and Bank of Baroda, were at the forefront of lending loans and helping street vendors in Gujarat.

The recent overhaul of the scheme introduces credit cards with a Rs 30,000 limit to vendors who have already repaid previous loans, increasing access to formal credit and working capital further.

Looking Ahead

The coverage now extends to rural vendors moving to the city, securing wider coverage and support for those pursuing urban livelihoods.

With more than 68 lakh street vendors all over the country being benefited, the achievement of Gujarat with 4.79 lakh independent vendors is an example of grassroots economic empowerment.

Sources: The Economic Times, India.gov.in, PIB, MyScheme, Patan District Official Portal