Key Points

Launched by Prime Minister Narendra Modi on June 1, 2020, the micro-credit facility scheme proved to be a boon for thousands of street vendors and small businesses in improving their livelihood.

As the scheme completes five years on Sunday (June 1), many beneficiaries pan-India shared their story of transformation with IANS while extending their gratitude to the Modi government.

In Bihar’s Bhagalpur, more than 4,000 beneficiaries have availed the benefits of the scheme.

It has opened new doors for poor and unemployed youth in the district. Today, there are around 1,200 street vendors who have taken a loan of up to Rs 20,000 and are doing business.

Some shopkeepers, namely Sujit Sinha, Arbind Das and Ganesh Gupta, who benefited from the scheme, expressed their deep gratitude to PM Modi.

Deputy Mayor of Bhagalpur Municipal Corporation, Salauddin Ahsan, informed that close to two dozen people got a loan of up to Rs 50,000 under the scheme.

Under this scheme, a loan up to Rs 10,000 is provided in the first phase, Rs 20,000 in the second phase and Rs 50,000 in the third phase. After repaying one loan, traders can avail of the next phase of the loan.

In Uttar Pradesh’s Chandauli district, local retailers said that this scheme has helped them a lot in expanding their business.

In Chhattisgarh’s Bemetra district, Chaileshwar Verma, who got a loan of Rs 10,000 under the scheme, restarted his fruit shop. Today, he has become self-reliant.

“I got a loan of Rs 10,000 from this scheme, with which I restarted my shop. Now my shop is running well. I have become self-employed,” he said.

Kawardha, another district of Chhattisgarh, also boasts of the scheme’s success as many small businessmen and street vendors saw their business propped by the Central government’s assistance under the PM-SVANidhi scheme.

Vikas Devangan and Narendra Kumar, the residents of Pandaria Municipality in Kabirdham district, received two instalments of Rs 20,000 under the scheme, which helped them restart their tea and grocery shop, respectively.

In Karnataka’s Tumkur district, a couple of women street vendors shared their story of despair during Covid and also explained how the scheme helped them cross past all challenges.

Lalita, a beneficiary, recalled the financial difficulties during Covid and how local lenders denied loans. She was unable to secure funds from the local bank, also. PM SVANidhi scheme came to her rescue as she was sanctioned a loan of Rs 10,000. She successfully repaid the amount by selling fruits and vegetables on the streets. She thanks the government for stabilising her livelihood during tough times.

Radha, a flower vendor, found it hard to sustain her business during Covid times. Under the PM SVANidhi scheme, she got a loan of Rs 10,000, which helped her improve her flower-selling business and gain financial stability. After successfully repaying the first loan, she secured another loan of Rs 20,000, which helped cover rent and also support her children's education.

Jayamma, a vegetable vendor in Tumkur, shared her story of finding stability because of the PM SVANidhi scheme, saying, “Before availing this scheme, I had to struggle with high interest as private loans made it difficult to sustain our business.

She expressed her gratitude to the Centre, saying that the scheme has brought a significant difference in her ability to support herself and her family.

The scheme launched during the Covid-19 pandemic on June 1, 2020, provides collateral-free loans up to Rs 50,000 for eligible street vendors in incremental tranches. It provides loans in three tranches: 1st tranche of Rs 10,000, 2nd tranche of Rs 20,000, subject to repayment of the 1st tranche, and 3rd tranche of Rs 50,000 upon repayment of the second loan.

- IANS