PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)
PM SVANidhi is a central-sector micro-credit scheme launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA) to provide handholding support to street vendors. The scheme facilitates a working capital collateral-free loan of ₹10,000, with subsequent loans of ₹20,000 and ₹50,000 with a 7% interest subsidy. The scheme focuses on increasing the digital footprint in India by promoting the use of digital transactions among street vendors. To incentivize the adoption of digital transactions, a cashback of up to ₹100 per month is given to Street Vendors. The scheme aims to formalize the street vendors and open up new opportunities for this sector to move up the economic ladder.
Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the doorstep of the city dwellers. They are known as vendors, hawkers, thelewala, rehriwala, theliphadwala, etc. in different areas/ contexts. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, bread, eggs, textile, apparel, footwear, artisan products, books/ stationary, etc. The services include barber shops, cobblers, pan shops, laundry services, etc.
The PM SVANidhi scheme offers incentives in the form of:
- interest subsidy @ 7% per annum on regular repayment of loan
- cashback upto INR1200/- per annum on undertaking prescribed digital transactions
- eligibility for enhanced next tranche of loans
Close to 2 million applications have been received under this scheme, of which 752191 have been sanctioned, and 218751 loans have already been disbursed.
Eligibility Criteria
- Street vendors in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs).
- The vendors, who have been identified in the survey but have not been issued Certificate of Vending / Identity Card.
- Street Vendors left out of the ULB-led identification survey or who have started vending after completion of the survey and have been issued a Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC).
- The vendors of surrounding development/ peri-urban/rural areas vending in the geographical limits of the ULBs, who have been issued a Letter of Recommendation (LoR) to that effect by the ULB / TVC.
Benefits
- Financial assistance of up to Rs. 10,000 is provided to street vendors to help them restart and expand their businesses.
- The loan is provided at a low-interest rate of 7%, making it easier for street vendors to repay the loan.
- No collateral is required to avail of the loan, making it more accessible to street vendors.
- There is no processing fee to apply for the scheme, making it cost-effective for street vendors.
- The loan amount can be used for any purpose related to the street vending business, such as buying raw materials, paying rent, or purchasing equipment.
- The scheme provides financial stability to street vendors and helps them to become self-reliant.
- The loan repayment period is one year, which gives street vendors sufficient time to repay the loan.
- The scheme encourages entrepreneurship and helps to create employment opportunities.
- The scheme is aimed at providing financial assistance to street vendors affected by the COVID-19 pandemic, helping them to recover from the economic impact of the pandemic.
- The scheme is implemented at the national level and is available in all States and Union Territories, making it accessible to street vendors across the country.
How to Apply
Step 1: Visit https://pmsvanidhi.mohua.gov.in/, and click on the “Apply for Loan” button on the homepage.
Step 2: Register yourself by providing your name, Aadhaar registered mobile number and other required details.
Your mobile number will be verified via OTP.
Step 3: After successful registration, log in to the portal using your mobile number and password. Fill in the application form with the necessary details such as personal information, business details, and bank account information. Upload the required documents.
Step 4: Click on the check box to agree with the declaration policy. Submit the application. An application number will be generated and a request will be sent to the respective ULB. Keep the application number saved for your reference and click on ‘Done’
Step 5: Post the submission, you will also have the option to print/download the application and to track the application status. If your application is approved, you will receive the loan amount in your registered bank account.