NE NEWS SERVICE
NEW DELHI, JUNE 19
The 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 the Ministry of Housing and Urban Affairs for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), a release said.
SIDBI shall be the implementation partner and in this capacity, it shall set up a Project Management Unit, power access to the scheme through a customized digital platform, integrate the institutional ecosystem, and build the capacity of the 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 the CGTMSE platform for the first time for the scheme. The platform shall also be integrated with the National Payments Corporation of India (NPCI) and the Unique Identification Authority of India (UIDAI) to enable the processes envisaged in the scheme.
Speaking on the occasion Mohammad Mustafa, IAS, Chairman and Managing Director of SIDBI said, “Our Mission Swavalamban takes forward the mandate of inducing entrepreneurship culture amongst youth, unserved/ underserved segments and geographies including those at the bottom of the pyramid. We have been laying emphasis on digital tools and platforms to strengthen the 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 the Ministry of Housing and Urban Affairs with the objective to facilitate working capital loans to street vendors thus enabling them to emerge self-reliant after the impact of COVID-19 pandemic and revive their livelihood activity through formal access to credit.
The salient features of the scheme include the initial working capital of up to Rs. 10,000, interest subsidy on timely/early repayment at the rate of 7 percent, monthly cash-back incentive on digital transactions, and higher loan eligibility on timely repayment of the 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 the vendors of surrounding peri-urban and rural areas.
The MoU was signed by Sanjay Kumar, Joint Secretary, Ministry of Housing and Urban Affairs (MoHUA), and V. Satya Venkata Rao, Deputy Managing Director of SIDBI in the presence of Minister of State (Independent Charge), MoHUA, 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.
