PM Svanidhi: Avail the Collateral-Free Loan Under the Government Street Vendor Scheme.

Prime Minister’s Street Vendor AtmaNirbhar  Nidhi (PM SVANidhi) is in a special Micro-Credit facility launched on June 1, 2020, by the Ministry of Housing and Urban Affairs to provide affordable loans to street vendors. The scheme facilitates a working capital collateral-free loan of 10,000 with subsequent loans of Rs.20,000 and Rs.50,000 with a 7% interest subsidy.

PM SVANidhi aims to increase India’s digital footprint by promoting this digital transaction among street vendors. To incentivise the adoption of digital transactions, a cashback of up to Rs.100 per month is given to Street Vendors.

The objective of PM SVANidhi

• 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.
• The scheme aims to formalize the street Vendors and open up new opportunities for this sector to move up the economic ladder.

Parameter	Guidelines‘
Aim	Facilitate working capital loans up to Up to Rs.10,000/- (1st Tranche). Up to Rs.20,000/- (2nd Tranche). Up to Rs.50,000/- (3rd Tranche). Incentive regular repayment. Reward digital transactions.
Nature of facility	Working Capital Term Loan (WCTL)- Working Capital in the form of a Term Loan.
Rate of Interest	RLLR + 1.45% + BSS (0.50) p.a.
Mandatory Information	Voter ID No. Minority Status. PWD Status. Benefits available under Central Government Schemes. Aadhar Card No.
Interest Subsidy	The street vendors availing loans under the Scheme are eligible to get an Interest Subsidy at 7% for all the loans i.e. 1st, 2nd, and 3rd loans.
Tenure	1st Tranche: Maximum 12 months. 2nd Tranche: Maximum 18 months. 3rd Tranche: Maximum 36 months.
Moratorium	No moratorium period (NIL)
Margin	NIL
Security	NIL
Collateral	NIL

Background of The Scheme

• The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihood of street vendors.
• They usually work with a small capital base which they might have consumed during the lockdown.
• Therefore, credit for working capital to street vendors will help them resume their livelihoods.

Features of PM SVANidhi

• Facilitates collateral-free Working Capital loans of up to Rs.10000/- for one year tenure.
• Interest subsidy of timely/early repayment @7%.
• Monthly cash-back incentive on digital transactions up to Rs.100 on undertaking a prescribed number of digital transactions.
• On-time repayment of the first loan, higher loan eligibility of Rs.20,000 and Rs.50,000 in the second and third tranches respectively.

Eligible Applicants

• Street vendors possess Certificate of Vending/Identity cards issued by Urban Local Bodies (ULBs).
• The vendors, who have been identified in the survey were done by Urban local bodies but have not been issued Certificate of Vending/Identity Cards.
• Street Vendors who have been left out of the ULB-led identification or who started vending after completion of the survey have been issued a letter of Recommendation (LoR) that is affected by the ULB/Town Vending Committee (TVC ).
• The vendors, who have been identified in the survey but have not been issued Certificate of Vending/Identity Card.

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.
• The scheme provides financial subsidies 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 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.

Application Process

Follow the following process to avail the benefit of the PM SVANidhi loan.

Online	Offline
Visit PM SVANidhi’s official site and click on the “Log In” button on the homepage. Enter your mobile number and captcha. Click request OTP. After successful login, select a valid “vendor category” among the available options. Enter “Survey Reference Number” (SRN) which is mandatory. On entering these basic details, fill out the application form online, upload the relevant documents and submit.	Understand the information documents required to fill out the Loan Application form (LAF). Keep all the information ready before you start the application process.  Ensure the mobile phone is linked to the Aadhar number. This will be required for e-KYC/Aadhar validation during the online application process. Check your eligibility status as per scheme Rules.

 

Required Documents

For 1st Loan:

For Category A and B vendors:

1. Certificate of Vending.
2. Identity Card.

For category C and D vendors:

1. Letter of Recommendation.

KYC Documents required in addition to CoV/ID/LoR:

1. Aadhar Card.
2. Voter Identity Card.
3. Driving License.
4. MNREGA Card.
5. PAN Card.

For Letter of Recommendation:

1. Copy of Account Statement/Passbook.
2. Copy of Membership Card/any other proof of membership.
3. Any other document to substantiate the claim as a vendor.
4. Request letter to ULB.

For Second Loan:

1. Loan Closure Document.

Lending Institution’s 

1. Schedule Commercial Bank.
2. Regional Rural bans.
3. Cooperative Banks.
4. Non-Banking Financial Companies.
5. Micro-Finance Institutions.
6. Self Help Groups (SHG) Banks.

Implementation Partner

• Small Industries Development Bank of India (SIDBI) will be the implementation partner of MoHUA for scheme administration.
• SIDBI will leverage the network of lending institutions including the SCBs, RRBs, SFBs, Cooperative Banks, NBFCs & MFIs for scheme implementation.

Also Read This: PMMY Loan: Get Funding For Both New & Existing Enterprises, Apply Online.

Action Required on Application

Category	Vendor Status	Action Required by Vendor
A	The vendor has been covered in the survey of Urban Local Body (ULB) and has been issued a certificate of vending (CoV) or Identity card (ID) by ULB or the Town Vending Committee.	Check your name in the survey list on the portal and note your Survey Reference Number (SRN). Keep a copy of your CoV or ID card ready for uploading during the application process.
B	The vendor has been covered in the survey of Urban Local Body (ULB) and has not been issued a Certificate of Vending or Identity card by the ULB or the Town Vending Committee.	A provisional CoV shall be generated for you by the system while making an online application.
C	Street vendors left out of the ULB-led identification survey or who have started vending after completion of the survey.	No Action Required.
C1	The vendor has been issued a letter of Recommendation by ULB/TVC.	Keep a copy of LoR ready for uploading.
C2	The vendor has not been issued LoR.	Declare one of the following. The vendor has received One-time assistance during the Covid lockdown. The vendor is a member of the vending/Hawkers association.
D	Street vendors of surrounding development/peri-urban/rural areas vending in the geographical limits of the ULBs.	No Action Required.
D1	The vendor has been issued a Letter of recommendation by ULB/TVC.	Keep a copy of LoR ready for Uploading.
D2	The vendor has not been issued LoR.	Declare one of the following. The vendor has received One-time assistance during the Covid lockdown. The vendor is a member of the vending/Hawkers association.

 

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References

https://www.myscheme.gov.in/schemes/pm-svanidhi

https://pmsvanidhi.mohua.gov.in/