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PM SVANidhi

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News:

The Centre launched a mobile app for street vendors to simplify their loan application process under the PM SVANidhi scheme, which marked its 3rd anniversary on the same day.

What:

  • PM SVANidhi is a micro-credit scheme introduced by the Central Government.
  • The scheme’s purpose is to support street vendors struggling due to the pandemic-induced economic downturn.
  • It provides a working capital collateral-free loan of ₹10,000 initially, followed by subsequent loans of ₹20,000 and ₹50,000 at a 7% interest subsidy.
  • A facility was also launched for vendors to easily obtain the Udyam Registration Certificate to promote their business.

Why:

  • The scheme and the new app aim to ease the economic stress caused by the pandemic on street vendors by providing financial support and simplifying the loan application process.

Who:

  • It is spearheaded by Union Housing and Urban Affairs Ministry.

When:

  • Launched in 2020.

Glossary:

  • Udyam Registration Certificate: A certificate issued by the Ministry of Small and Medium Enterprises in India, enabling small businesses to avail benefits from various government schemes.

MCQ:

Consider the following statements:

Statement-1: The PM SVANidhi scheme provides a working capital collateral-free loan of ₹10,000 initially, followed by subsequent loans of ₹20,000 and ₹50,000 at a 7% interest subsidy.

Statement-II: The scheme was launched by the Ministry of Small and Medium Enterprises to enable small businesses to avail benefits from various government schemes.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

Answer: (c) Statement-I is correct but Statement-II is incorrect

Explanation: While Statement-I correctly outlines the loan provisions under the PM SVANidhi scheme, Statement-II incorrectly attributes the launch of the scheme to the Ministry of Small and Medium Enterprises. The PM SVANidhi scheme was spearheaded by the Union Housing and Urban Affairs Ministry. The Udyam Registration Certificate, which is issued by the Ministry of Small and Medium Enterprises, is a separate facility launched for vendors under the scheme.

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