PM SVANidhi Scheme (Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi) is an initiative development of India launched by theMinistry of Housing and Urban Affairs. The scheme aims to empower the street vendors by providing them with loans for their holistic development and economic upliftment. Balloons provided to the street vendors under the scheme are going to be collateral free with a working capital of up to ₹10000 for a one year tenure. Approximately 50 lakh Street vendors are put under the ambit of the scheme to help them resume their business in urban, peri-urban & rural areas.
The scheme was launched in June 2020 to support the street vendors bhai providing them a collateral free working capital of ₹10000 followed by subsequent loans of ₹20000 & ₹50000 with a 7% interest subsidy. The scheme also promotes digital transactions among the street vendors. It provides cashback of up to ₹100 to the street vendors each month to increase their digital footprint.
Street vendors are an important part of the urban informal economy. Availability of goods and services at affordable prices is ensured at your door steps with support of the street vendors. Therefore, PM SVANidhi provides them an opportunity for economic growth.
This article provides a detailed analysis of the scheme and helps you understand its various dimensions. In this article we cover the scheme’s objectives, benefits, eligibility criteria, how to apply & documents required to apply for the scheme.
Overview Table:-
| Key Details | Information |
|---|---|
| Scheme Name | PM SVANidhi (Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi) |
| Launched By | Ministry of Housing and Urban Affairs |
| Launch Date | June 2020 |
| Target Beneficiaries | 50 lakh street vendors |
| Initial Loan Amount | Up to ₹10,000 |
| Subsequent Loans | ₹20,000 and ₹50,000 |
| Interest Subsidy | 7% |
| Loan Tenure | 1 year |
| Digital Transaction Incentive | Cashback up to ₹100/month |
| Application Mode | Online and Offline |
The main objectives of the scheme is-:
- to make street vendors self reliant
- To help them become economically stable
- To boost their businesses
- Promote economic growth
- Assist 320 whose businesses were affected due to the COVID-19 pandemic
- Create more employment opportunities
- Promote entrepreneurship
Benefits:-
PM SVANidhi scheme offers the following benefits to street vendors:
- The scheme offers collateral free working capital of up to ₹10000 to the street vendors to help there economic growth
- The subsequent loan provided, is provided at an interest rate of as low as 7% making it easier for the vendors to repay the loan
- The scheme becomes more accessible to the street vendors because they do not required to avail the loan
- There is no application fees making the scheme cost effective for street vendors
- The scheme helps Street vendors to restart their businesses and allows them to buy raw materials, paying rents, aur purchasing equipment
- The scheme is a push to the street vendors in the direction of becoming self reliant and is in line with the goal of Atmnirbhar Bharat
- The loan repayment period is of one year which provides street vendors sufficient time to repay the loan
- The motive of the scheme is to create employment opportunities and encourage entrepreneurship
- The scheme aims to bring on track businesses of street vendors who suffered immensely during the COVID-19 pandemic
- The scheme is applicable to all Street vendors across the country in all states and union territories
Eligibility Criteria:-
Any person who wants to apply under the PM SVANIDHI scheme must satisfy the following criteria:
- An applicant must have the certificate of vending Identity card issued by the urban local bodies
- Street vendors who have been identified under the survey but haven’t win issued certificate of vending aur identity cards are also eligible under the scheme
- Such vendors can generate a provisional certificate of vending through an IT based platform. They might receive their permanent certificate so winding within a period of one month
- Street vendors who are left out during the urban local body’s survey aur have started vending after the completion of the survey but have been issued letter of recommendation by the urban local body aur town vending committee (TVC) are eligible to avail the benefits of the scheme
- Any street vendor of surrounding development/peri-urban/rural areas who have been vending in the geographical limits of the urban local bodies and have a letter of recommendation by the ULB/TVC can also avail the benefits of the scheme
How to apply?
An applicant has an option of applying under the PM SVANidhi scheme both in online and offline mode.
Pre- application Steps:
- Ensure you with hold all the documents required to fill the loan application form
- Make sure that the mobile number used during registration is link to with your Aadhaar number
- This will be required for e-KYC/ Aadhar verification during the online application process
- This would also help you get the letter of recommendation
- A properly done e-KYC will also help you gain the benefits of other government welfare schemes in future
- Check eligibility status as per the scheme rules
Online Application Process:
To apply for the scheme online, a candidate must follow the following steps:
- Visit the PM SVANidhi portal
- Click on the ‘login’ button
- Enter your mobile number and captcha code
- Click on request OTP
- Enter the OTP received on your registered mobile number
- After successfully logging in, click on the ‘vendor category’ among the available options
- Enter the ‘Survey Reference Number’ (SRN) that has to be entered mandatorily
- Feel the online application form
- Upload the relevant documents
- Click on submit
- Your online registration is complete
- To acknowledge, you will receive an SMS on your registered mobile number
To apply for the scheme in the offline mode, follow the following steps:
- A candidate has to a fill the ‘Loan Application Form’ to apply for the scheme
- But before that he/she must understand the
- Check your category under the scheme rules
- Apply for the scheme
Documents Required:-
The scheme divides vendors into different categories-:
For 1st loan:
Category A & B vendors require:
- A Certificate of vending
- An identity card
Category C & D vendors require:
- A Letter of recommendation
KYC documents required in addition to CoD/ID/LoR:
- Aadhar card
- Voter ID card
- Driving license
- PAN card
- MGNREGA card
To get a letter of recommendation, following documents are required:
- Copy of account statement/passbook
- Copy of membership card/ any other proof of membership
- Any other document that claims that you are a street vendor
- Request letter to ULB
For 2nd loan:
- You need to provide a loan closure document.
Frequently Asked Questions (FAQs)
Q.1 What is the PM SVANidhi scheme?
The PM SVANidhi scheme provides collateral-free loans to empower street vendors economically.
Q.2 Who launched the PM SVANidhi scheme?
The Ministry of Housing and Urban Affairs launched the PM SVANidhi scheme in June 2020.
Q.3 What is the maximum loan amount under this scheme?
Street vendors can receive a maximum loan amount of ₹50,000 over time.
Q.4 How much is the interest rate for these loans?
The scheme offers loans at a low-interest rate of 7%.
Q.5 Are there any application fees?
No, the PM SVANidhi scheme does not charge any application fees.
Q.6 How can vendors apply for the PM SVANidhi scheme?
Vendors can apply online or offline through designated local bodies.
Q.7 What documents are required for the first loan?
Vendors need a certificate of vending and an identity card or a letter of recommendation.
Q.8 Is the loan repayment period flexible?
Yes, vendors have a one-year repayment period for the loans.
Q.9 How does the scheme promote digital transactions?
The scheme offers cashback incentives to vendors for making digital transactions.
Q.10 Who is eligible for the PM SVANidhi scheme?
Street vendors with a certificate of vending or a recommendation letter from local bodies are eligible.
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