PM SVANidhi Scheme

The COVID-19 pandemic negatively impacted everyone, but street vendors specifically. The capital base of a street vendor is usually short. The country's lockdown devoured their savings and capital base.

Urban informal economies rely heavily on street vendors. They play a significant role in ensuring that city dwellers can access affordable goods and services. Hence, after the pandemic, it became urgent to provide vendors with working capital to resume their business.

Accordingly, the government approved a working capital credit scheme for street vendors in June 2020, known as PM Street Vendors' AtmaNirbhar Nidhi (PM SVANidhi Yojana). This scheme allowed street vendors to take one-year low-interest loans without collateral.

Features Of PM SVANidhi Scheme

• It is a Central Sector Scheme, which means the central ministries funded it directly.
• Implementation of the scheme took place until March 2022.
• To apply for the loans, you had to work in either the urban area or the surrounding rural or semi-urban area by March 24, 2020.
• In the beginning, Rs. 10,000 was provided as working capital.
• Vendors received an Interest Subsidy of 7% upon timely or early repayment. Additionally, those vendors received larger loans in preceding transactions.
• Vendors received monthly cash-back incentives for Make in India and Digital Transactions campaigns. Cashbacks of between Rs. the government offered 50 and Rs. 100.
• There is no collateral attached to the loans.

Objectives Of PM SVANidhi Scheme

To maximise the potential of these loans, they were designed with simple, profitable, and helpful objectives that were easily understandable for the general public. Its potential extends beyond just helping the needy, securing their futures, and enabling them to implement technology.

• Working Capital Loan:

This scheme aimed to provide subsidised working capital loans of Rs. 10,000 to every eligible applicant.

• Digital Transactions Are Rewarded:

By creating awareness, maintaining safety protocols in times of a virus outbreak, bringing everyone to the same platform, and rewarding the vendors with cashback, it builds awareness. It helped keep them afloat financially and encouraged the most profound and rooted citizens of India to embrace digitalisation.

• Incentivize Regular Loan Repayment:

A daily wager’s life is not easy, and taking a loan may help them. However, repaying the loan can be challenging. Providing incentives for timely loan repayment encouraged them while at the same time making the process more convenient, beneficial, and cost-effective.

List Of Lending Institutions For PM Svanidhi Scheme

To reach the general public, the government chose banks carefully and expressly. The following are all the lending institutions that were part of the scheme.

• Self-help group Banks (SHG)
• Small Finance Banks (SFBs)
• Regional Rural Banks (RRBs)
• Cooperative Banks
• Scheduled Commercial Banks
• Micro Finance Institutions (MFIs)
• Non-Banking Financial Companies (NBFCs)

Eligibility Criteria Of PM Svanidhi Scheme

On or before March 24, 2020, every street vendor working in urban areas could join the PM Svanidhi scheme. The following criteria helped identify beneficiaries:

• Street vendors in possession of an Urban Local Bodies (ULBs) Certificate of Vending or an Identity card
• Despite being identified in the survey, street vendors did not receive a Certificate of Vending or Identity Card. Street vendors were issued a Provisional Certificate of Vending in these cases.
• Vendors who did not participate in the ULB-led identification survey or started vending after the survey was complete did receive a Letter of Recommendation (LoR) from the ULB or Town Vending Committee (TVC).
• Street vendors in nearby developments, rural or peri-urban areas, received permission from the ULB or TVC to vend within the ULB's boundaries.

Documents Required For Application To PM Svanidhi Scheme

The loan process is simple and includes minimal documentation. Vendors need the following documents to apply.

• A letter of recommendation or a certificate of vending issued and verified by the ULB or TVC
• Identity Proof and Address Proof that may include:
◦ Aadhaar Card
◦ Ration Card
◦ Driving License
◦ MNREGA Card
◦ Voter Id
◦ PAN Card

SVANidhi Scheme Application Process

Vendors interested in applying for loans under the SVANidhi Scheme had to contact their local Banking Correspondent or MFI Agent. A Common Service Center (CSC) assisted vendors throughout the application process. This personnel guided all registered/identified street vendors through the application process per the ULB's list.

A mobile app and an online portal- http://pmsvanidhi.mohua.gov.in/ - were available for applications. Applicants may apply directly or through one of the assisting bodies mentioned above.

PM SVANidhi Yojana Application Status: How to Check?

Beneficiaries can check the status of PM SVANidhi through the following steps.

• Visit the official website of PM SVANidhi
• Login with your ID and password

A screen displayed the status of the PM Sannidhi Yojana application.

Apply For A Business Loan With IIFL Finance

The PM SVANidhi Yojana Scheme was quite beneficial for vendors. However, the interest subsidy was only available till March 31, 2022. Luckily, vendors who want extra funds can get help from IIFL Finance.

If you’re a vendor looking for funding to grow and expand your small business, an IIFL Finance business loan can help. With affordable and attractive interest rates, we make repayment easy to reduce your financial burden. Apply now!

FAQs

Q1. What is the tenure of the Rs. 10,000 loan under the PM SVANidhi Yojana Scheme?
Ans. These working capital loans are granted for one year.

Q2. Is there any penalty for the pre-closure of the loan?
Ans. No, there are no penalties for preclosure or repaying the loan early.