PM SVANidhi: Features, Eligibility, Application Process & Benefits

source : india.gov

The COVID-19 lockdowns affected the livelihoods of every citizen in India, especially street vendors. The lockdowns resulted in the depletion of their capital base and savings.

Also known as thelewala, theliphadwala, hawkers, rehri wala, etc., they are crucial for the informal urban economy. They ensure the availability of services and goods at nominal prices to the people living in cities. Thus, a need came up to provide these street vendors with credit for working capital.

The Central Government of India launched the PM SVANidhi scheme to provide the same.

PM SVANidhi is a Central Government initiative launched in June 2020 to give credit for working capital to street vendors of India. This PM SVANidhi scheme provides loans without any collateral. These loans are provided for one year at a very low-interest rate.

The main objectives of this PM SVANidhi Yojana are – 

• To give out loans for working capitals up to ₹ 10,000 at a very low-interest rate
• To encourage regular repayment of a loan
• To give the benefits of digital transactions

Salient features of this scheme are –

• Provision of working capital of ₹ 10,000 initially
• Monthly repayment of installments
• Lowered interest rate at 7% for timely or early repayment

To be eligible for this scheme, beneficiaries need to follow these criteria – 

• Street vendors must possess a vending certificate or ID card that the Urban Local Bodies issue. 
• Street vendors without a vending certificate or ID card must have a provisional certificate of vending. 
• Those vendors who started vending after the ULB identification survey was completed must possess a Letter of Recommendation from the Town Vending Committee or Urban Local Bodies.

You can follow these steps to avail the benefits of this SVANidhi scheme online –

Step 1: Visit the official portal of the PM SVANidhi Scheme. 

Step 2: Click on the ‘Apply for Loan’ button on the homepage. A login page will open where you have to enter your contact number.

Step 3: Click on the Captcha and proceed to request the One Time Password. 

Step 4: Enter the OTP sent to your mobile number for verification. The application form will appear on your screen. 

Step 5: Enter your Aadhaar number and fill up all the necessary information. 

Step 6: Upload all the relevant documents on the next page. 

Step 7: Finally, submit this application form to initiate the loan procedure. 

Step 8: For future reference, keep a printout of the application form.

The following KYC documents are necessary to apply for a loan under this scheme –

• Vending ID or certificate that ULBs have issued or LoR (Letter of Recommendation) from TVC or ULB.
• Any one of these documents –

Aadhaar Card 

Voter ID Card

Driving License

MGNREGA Card

PAN Card 

Urban street vendors enjoy the following benefits under this scheme –

1. Loans for Working Capital

Street vendors can opt for a Working Capital Loan, up to ₹ 10,000 for a time period of one year. The repayment can be made in the form of monthly instalments. They can avail of this loan without any collateral. In case of timely or early repayment of loans, the beneficiaries will be eligible for the next loan cycle with an increased credit limit.

2. Interest Rate

In the case of Small Finance Banks, Scheduled Commercial Banks, Cooperative Banks, Regional Banks and Self-help Groups Banks, the interest rates will be according to the prevailing interest rates.

For Non-Banking Financial Company-Micro Finance Institution, Non-Banking Financial Company, etc., the interest rates will be according to RBI guidelines for their respective lender category.

In the case of MFIs and other categories of lenders, the rates of interest will be according to the extent of RBI guidelines for NBFC-MFIs.

3. Interest Subsidy

With the Working Capital loans, beneficiaries get interest subsidies at 7%, which are credited to their bank accounts quarterly.

4. Incentivizing Digital Transactions

Through this scheme, incentives will be provided to the street vendors in the form of cashback. The following digital transaction platform will be used to do so – NPCI, Paytm, GooglePay, PhonePe, BharatPay, etc. The cashback amount will range from ₹ 50 to ₹ 100 every month.

You now know all the information related to PM SVANidhi scheme. However, visit their official portal to acquire more details regarding application status for PM SVANidhi.