Ministry of Housing & Urban Affairs (MoHUA) has inked Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) to make latter as the implementation Agency for Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) – a Special Micro-Credit Facility for Street Vendors.
- The MoU was signed by Sanjay Kumar, Joint Secretary on behalf of Ministry of Housing and Urban Affairs (MoHUA) and Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI, in the presence of Hardeep Singh Puri, Minister of State (Independent Charge) MoHUA during a meet in New Delhi.
Terms of MoU:
-SIDBI will implement the PM SVANidhi Scheme under the guidance of MoHUA.
-It will manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
-It will develop and maintain a customized and integrated IT Platform providing end-to-end solutions through a Portal and a Mobile App, to ensure engagement and information flow between Urban Local Bodies (ULBs), Lending Institutions, Digital Payment Aggregators and other stakeholders.
-It will leverage the network of lending Institutions like Scheduled Commercials Banks (SCBs), Non-Bank Finance Companies (NBFCs), Micro Finance Institutions (MFIs), Co-operative Banks, Small Finance Banks (SFBs), Regional Rural Banks (RRBs), etc. for the Scheme implementation.
-SIDBI will also provide a Project Management Unit (PMU), comprising of domain experts in training/ capacity building, project and platform management, Information Education and Communication (IEC), banking, NBFC and MFI sectors etc., for the period of PM SVANidhi i.e. upto March 2022.
About PM SVANidhi:
It was launched by the MoHUA, on June 01, 2020 for providing affordable Working Capital loan to 50 lakh street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown. Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
- On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis. There will be no penalty on early repayment of loan.
- The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
In the first phase, 108 cities have been selected, in consultation with States/Uts, for saturation by September 2020. Disbursement of loan is planned to commence in July, 2020.
About SIDBI:
Headquarter– Lucknow, Uttar Pradesh (UP)
Chairman & Managing Director (CMD)– Mohammad Mustafa
