Table of Contents
Introduction
PM SVANidhi – The PM Street Vendors Atmanirbhar Nidhi (PM SVANidhi) scheme, launched in June 2020 amid the pandemic, is a micro-credit facility that provides street vendors with a collateralized loan of Rs 10,000 at low-interest rates for one year.
Pradhan Mantri Swanidhi, or Self-Reliant Fund, Prime Street Vendor, is a central government scheme launched in June 2020. The scheme aims to provide micro-credit facilities to street vendors affected by the coronavirus pandemic. The scheme provides collateral-free working capital loans to the beneficiaries.
Features of the PM SVANidhi Yojana
Some of the salient features of the Pradhan Mantri SVANidhi Yojana are as follows:
- Loan Amount: This central government scheme provides handholding support to street vendors through unsecured loans of up to ₹10,000.
- Repayment Tenure: The scheme’s beneficiaries can repay the loan amount over 12 months.
- Prepayment Benefit: The scheme also provides a subsidy of 7% on the interest amount if you repay the loan before the scheduled tenure. The subsidy is directly transferred to their bank account through Direct Benefit Transfer.
- Collateral-Free Loan: These loans are unsecured, meaning the beneficiaries do not have to put up an asset as collateral.
- An incentive for Digital Transactions: To promote digital transactions, the MoUHA (The Ministry of Urban and Housing Affairs) provides cashback if you repay the loan digitally.
Background
Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring the availability of goods and services at affordable rates at the doorstep of city dwellers. They are known as vendors, hawkers, thelewala, Kejriwal, theliphadwala, etc., in different areas/ contexts. Thus, the goods they supplied include vegetables, fruits, ready-to-eat street food, tea, pakodas, bread, eggs, textiles, apparel, footwear, artisan products, books/stationery, etc.
Therefore, the services include barber shops, cobblers, pan shops, laundry services, etc. The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. Thus, they usually work with a small capital base and might have consumed the same during the lockdown. Therefore, there is an urgent need to provide credit for working capital to street vendors to resume their business.
PM SVANidhi Login Process
You can initiate the login process if you are a beneficiary under the PM SVANidhi scheme. All you have to do is visit the official website of the PM SVANidhi scheme using your credentials. Amd also, follow these simple steps to log in to this scheme’s official webpage:
- Step 1: Visit the official PM SVANidhi website and click “Login.”
- Step 2: Enter your username and password. Wait to receive an OTP.
- Step 3: Enter the OTP received and click You have successfully logged into your account on the PM SVANidhi website.
And also, aafter logging in to the website, you can check your loan application status and other facilities available under the scheme.
Objectives
The scheme is a Central Sector Scheme, i.e., fully funded by the Ministry of Housing and Urban Affairs with the following objectives:
(i) To facilitate working capital loans up to `10,000;
(ii) To incentivize regular repayment; and
(iii) To reward digital transactions.
The scheme will help formalize the street vendors with the above objectives and open up new opportunities for this sector to move up the economic ladder.
Prime Minister SVANidhi
Name of the Facility
Therefore, Ministry of Housing and Urban Affairs (MoHUA) has launched PM Street Vendor’s AtmaNirbharNidhi (PM SVANidhi), a Special Micro-Credit Facility Scheme for providing affordable loans to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown.
Eligible Borrowers
Street Vendors are known as hawkers, thelewala, Kejriwal, theliphadwala, etc., in different areas/ contexts.
- The Scheme will be available to all street vendors engaged in Urban areas on or before 24th March 2020.
Due-Diligence
- The borrower’s selection shall be strictly based on the eligibility criteria stipulated in the scheme.
- e-KYC is mandatory for all direct loan applicants.
- Credit information report to be verified to ensure that the borrower’s existing loan account(s) are not classified as NPA/ Fraud/ Wilful default.
Loan Amount
Urban street vendors will be eligible to avail of Working Capital (WC) loans of up to Rs10,000.
Loan Period(Maximum)
The tenure of the loan shall be one year.
The loan shall be paid in 12 Equated Monthly Instalments(EMI).
Security
No Collateral security shall be obtained for loans under the scheme.
Processing charges/Documentation Charges etc
NIL
Interest Subsidy
The vendors availing loans under the scheme are eligible for an interest subsidy @ 7%. The interest subsidy amount will be credited into the borrower’s account quarterly.
Prepayment Penalty
NIL
Promotion of Digital Transactions by Street Vendors
The scheme will incentivize digital transactions by vendors through a cashback facility.
Frequently Asked Questions for PM SVA NIDHI Scheme
1. What is Pradhan Mantri Street Vendor Atamnirbhar Yojana?
Therefore, PM SVANidhi is a central sector scheme launched by the Ministry of Housing & urban affairs to please provide a working capital (loan) of up to Rs 10,000 to street vendors to resume business.
2. Who are street vendors?
Street vendors are the person who is engaged in vending goods, wares, food items or everyday use articles, or someone who offers services to the general people from a temporary built-up structure or by shifting and moving from one place to another.
- Hawkers,
- Thelewala,
- Rehriwala,
- Theli hawala etc
- and services like barber shops,
- cobblers,
- pan shops,
- Laundry services,
- vegetable sellers ETC
3. What are the features of the scheme?
- The scheme provides loans of up to 10,000 to street vendors.
- The amount can be repaid in monthly installments over a tenure of 1 year.
- And also Interest subsidy on timely/ early repayment @ 7%
- Monthly cashback incentive on digital transactions
4. What are the KYC documents required for the scheme?
Therefore, You may carry any one of the following documents for KYC purposes:
- Aadhaar Card
- Voter’s Identity Card
iii. Driving Licence
- MNREGA Card
- PAN Card.
5. Is it necessary to link your mobile number with Aadhaar to avail the benefit of the loan?
Yes, it is necessary. This will be required for your e-KYC/Aadhaar validation during online
the application process of a loan.
6. How long will it take to get the loan approved?
Therefore, It may take up to 30 days in the whole process.
7. What will be the interest rate of this loan?
The interest rate is to be decided by the bank as per GoI guidelines. GoI will give a rebate of 7 percent
the interest will be paid in the beneficiary account directly
