The COVID-19 pandemic has crippled the livelihood of people from every walk of life. However, the most affected community during these times have been vendors. The long-term nationwide lockdown led to several vendors losing their daily income. In the wake of this crisis, the Central Government of India launched the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme on 1 June 2021. The mission is driven by the Ministry of Housing & Urban Affairs and aims to empower the street vending community.
As part of the PM SVANidhi scheme, street vendors can avail loans to support and accelerate the growth of the business. It not only aids beneficiaries through economic upliftment but also provides holistic development. The PM SVANidhi provides collateral-free working capital of up to ₹ 10,000. The loan tenure extends over one year and can be repaid through monthly instalments. The financial support is essentially directed to help street vendors resume their business in rural, peri-rural and urban areas of the country.
PM SVANidhi Scheme – Eligibility Criteria
The PM SVANidhi scheme can be availed by people who belong to certain States and Union Territories. These regions must have notified rules and schemes under the Street Vendors Act, 2014. To be eligible in these listed regions, a street vendor:
- Must have a Certificate of vending or an ID card that is issued by the Urban Local Bodies (ULB).
- In case a street vendor does not have an ID card or Certificate of vending, then he/she must be identified through a survey conducted by the PM SVANidhi authorities.
- If a vendor is not included in the survey, then he/she can use the Letter of Recommendation (LOR) that can be obtained through the Urban Local Body.
PM SVANidhi – Lending Banks
The Ministry of Housing and Urban Affairs is affiliated with several banks to ensure that the vendors’ scheme can be accessed by all eligible candidates. Loans can be availed through PM SVANidhi yojana through scheduled commercial banks, cooperative banks, Non-Banking Financial Companies (NBFCs), regional rural banks, small finance banks, micro-finance institutions and even Self-Help Group (SHG) Banks.
Steps to Apply for the PM SVANidhi Loan
It is extremely easy to apply for the PM SVANidhi loan online. Follow the below-mentioned listed steps:
Step 1: Visit the official PM SVANisdhi website
Step 2: Click on the ‘Apply for a loan’ tab.
Step 3 Enter your mobile number and the given captcha code. Click on ‘Submit’.
Step 4: Select the category that you want to apply against. Fill in the required details.
Step 5: Click on the ‘Submit’ button. This step concludes your application process.
PM SVANidhi Scheme – Essential Documents
To apply for the loan under the PM SVANidhi scheme, beneficiaries are required to present all the following given documents.
- Aadhar Card
- Voter’s Identity Card
- Driving License
- PAN Card
The documents can be directly submitted to the bank or uploaded through the PM SVANidhi mobile application.
PM SVANidhi Scheme Incentives
The PM SVANidhi scheme enables easy financing while also offering vendors the opportunity to avail of different incentives. The lucrative incentives include:
- An interest subsidy of 7% per annum when the repayments are made regularly
- Cashback up to INR1200/- per annum upon taking prescribed digital transactions.
- Eligibility for enhanced next tranche of loans
PM SVANidhi Mobile Application
To further facilitate the user experience of beneficiaries, the government launched the PM SVANidhi mobile application. The application has been designed to encourage digital transactions made through the scheme. Users can conveniently use the application to make digital payments through UPI, RuPay debit cards and more. Using the digital mode further helps vendors enjoy incentives through monthly cashback.
The PM SVANidhi yojana is a great initiative driven by the Central government and helps vendors strengthen their business endeavours. You can visit Finserv MARKETS to understand more about the PM SVANidhi scheme and stay updated on the recent updates.
