What Is PM SVANidhi Scheme: How To Apply For Street Vendor Loan

The PM Street Vendor AtmaNirbhar Nidhi (PMSVANidhi) scheme, introduced by the Ministry of Housing and Urban Affairs, aims to support street vendors by providing them with loans and promoting their overall development and economic progress.

The PM SVANidhi scheme, launched on June 1, 2020, offers collateral-free working capital loans of up to INR 10,000 for one year to approximately 50 lakh street vendors. This financial support is designed to help them restart their businesses in urban areas, including peri-urban and rural areas.

Mobile Application for PM SVANidhi Scheme

On July 17, 2020, the Central Government launched a mobile application for the PM SVANidhi scheme. This app aims to encourage digital transactions among street vendors, offering rewards such as monthly cashback for conducting transactions digitally.

Objectives of PM SVANidhi Scheme:

The PM SVANidhi scheme has three main objectives:

1. Providing affordable working capital loans to street vendors affected by the COVID-19 pandemic.
2. Promoting digitalization by rewarding vendors who opt for digital repayment of loans.
3. Encouraging regular repayment of loans by providing cashback and offering higher loans on subsequent demands.

Features of PM SVANidhi Scheme:

1. Central Sector Scheme: PM SVANidhi is a central sector scheme.
2. Affordable Working Capital Loans: The scheme provides affordable working capital loans to street vendors affected by the pandemic.
3. Implementation Period: PM SVANidhi will be implemented till March 2022.
4. Initial Working Capital: Vendors will be provided with an initial working capital of up to Rs.10,000.
5. Collateral-Free Loans: Vendors do not need to provide any collateral security to access the loan.
6. Interest Subsidy: Vendors receive a 7% interest subsidy for early or timely repayment of loans.
7. Incentive for Digital Payments: Monthly cashback ranging from Rs.50 to Rs.100 is provided as an incentive for digital payments.

Eligibility Under PM SVANidhi Scheme:

To be eligible for the PM SVANidhi scheme, applicants must meet the following criteria:

1. Indian citizenship.
2. Age between 18 and 60 years.
3. Valid proof of residence (voter ID card, Aadhaar card, or ration card).
4. Valid proof of vending activity (certificate from local authorities or a trade license).
5. A bank account in the applicant’s name.
6. Annual income less than Rs. 1.2 lakh.

Additional eligibility criteria include being a street vendor engaged in the sale of goods or services, not availing of any other government loan or subsidy scheme for self-employment, and a willingness to repay the loan in installments.

Benefits of PM SVANidhi Scheme:

1. Working Capital Loan: Vendors can receive a working capital loan of up to Rs.10,000, repayable in monthly installments over one year.
2. Promotion of Digital Transactions: The scheme promotes digital transactions with monthly cashback incentives.
3. Credit Limit Escalation: Vendors can escalate their credit limit on timely/early repayment of loans.
4. Interest Subsidy: An interest subsidy of 7% per annum is credited to the beneficiaries’ bank accounts on timely/early repayment of the loan.
5. No Penalty on Early Repayment: There is no penalty for early repayment of the loan.

Who Can Apply for PM SVANidhi Scheme?

Beneficiaries from states or union territories that have notified rules and schemes under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, are eligible to apply.

How to Apply for a Street Vendor Loan:

1. Visit the website www.pmsvanidhi.mohua.gov.in.
2. Click on “Apply for a loan.”
3. Enter your mobile number and captcha.
4. Select the category and fill in the required details.
5. Click on submit.

PM SVANidhi Mobile App:

The PM SVANidhi Mobile App, launched by the Central Government, enhances the accessibility of the scheme. The app provides a user-friendly digital platform for lending institutions and field agents to efficiently source and process loan applications. This step towards promoting digital technology empowers field functionaries, such as Banking Correspondents and Agents of Non-Banking Financial Companies/Micro-Finance Institutions, to extend the reach of the scheme effectively.

Positive Takeaway

The PM SVANidhi scheme stands as a beacon of support for street vendors, aiming to uplift them economically and promote financial independence. With its user-friendly mobile app and incentives for digital transactions, the scheme is making significant strides in enhancing the livelihoods of street vendors across the country.