EDEN IAS

SVANIDHI MAHOSTAV

UPSC CURRENT AFFAIRS | MINISTRY OF HOUSING & URBAN AFFAIRS (MOHUA) LAUNCHES STREET VENDORS ATMANIRBHAR NIDHI (SVANIDHI) MAHOTSAV | 09TH JULY | BUSINESS STANDARDS

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:

  • 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
ACHIEVEMENTS:
  • 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

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