PM Svanidhi Scheme:- Prime Minister Street Vendor’s AtmaNirbhar Nidhi Scheme is the full name of PM SVANidhi. The COVID-19 pandemic lockdowns had a detrimental effect on everyone’s livelihood, particularly on street vendors. Typically, street vendors operate with a modest initial investment. They would have lost all of their savings and capital base during the national lockdown. An essential component of the urban informal economy is the street vendors. They are crucial in making sure that city people can access goods and services at reasonable costs.
Street vendors are known by a variety of names in different contexts and places, including hawkers, thelewala, vendors, theliphadwala, and rehriwala. They provide a variety of products, such as bread, tea, pakodas, fruits, vegetables, ready-to-eat street food, textiles, shoes, clothing, artisan goods, stationery, etc. They offer cobblers, barbershops, pan shops, laundry services, and so forth. As a result, it became urgently necessary to give them credit so they could start up again with working capital. The government introduced the PM Street Vendor’s AtmaNirbhar Nidhi (PM Svanidhi) scheme in June 2020 to give street vendors credit for working capital. The street vendors are eligible to apply for low-interest, collateral-free loans under this program for a year.
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Important Facts about PM SVANidhi
|Full-Form of PM SVANidhi
|Prime Minister Street Vendor’s Atmanirbhar Nidhi
|1st June 2020
|Under which government ministry?
|Ministry of Housing and Urban Affairs (MoHUA)
|Direct Link to avail of the benefits under the PM SVANidhi
|Mandatory Documents to Access Benefits
Voter Identity Card
|Tenure of the scheme
|June 2020 – March 2022
|Direct Link to avail the benefits under the PM SVANidhi
Salient Features of PM SVANidhi
- It’s a central government Digitize India program.
- It will offer street vendors impacted by the new coronavirus pandemic accessible working capital loans.
- It will be in force until March 2022.
- Vendors will receive an initial working capital of up to Rs. 10,000.
- If a vendor pays back their loans early or on schedule, they will receive a 7% interest subsidy.
- For digital payments, there’s a cash-back reward available every month.
- A monthly cashback of between Rs. 50 and Rs. 100.
- If a vendor repays the first loan on time, there is a good chance that they will be qualified for a larger loan.
- To be eligible for a loan, a vendor does not need to offer any collateral security.
Objectives Of PM Svanidhi Scheme
- To encourage prompt loan repayment, to reward digital transactions,
- To facilitate and provide working capital loans up to Rs. 10,000 at a discounted interest rate
Background of the Scheme
- The COVID-19 pandemic and the ensuing lockdowns have severely impacted street vendors’ ability to make a living.
- Their small capital base, which they may have used up during the lockdown, is typically what they operate with.
- Thus, street vendors will benefit from credit for working capital in order to resume their livelihoods.
Eligibility Criteria Of PM Svanidhi Scheme
On or before March 24, 2020, all street vendors operating in urban areas are eligible to apply for the PM Svanidhi scheme. To ascertain who will profit from this plan, the following criteria will be applied:
- street sellers who have an ID card or a Certificate of Vending from an Urban Local Body (ULB).
- The survey did identify street vendors, but they have not received the Certificate of Vending or the Identity Card. In these situations, the street vendors will receive a Provisional Certificate of Vending.
- A Letter of Recommendation (LoR) has been issued by the Town Vending Committee (TVC) or the ULB to street vendors who were not included in the identification survey or who started selling after the survey was completed.
- The ULB or TVC has issued a Letter of Recommendation (LoR) to street vendors operating within its boundaries, whether they are from the surrounding development, rural or peri-urban areas.
Benefits Under PM Svanidhi Scheme
The PM Svanidhi scheme offers the following advantages to urban street vendors:
Working Capital Loans
Urban street vendors are eligible to apply for a Working Capital (WC) loan of up to Rs. 10,000 with a one-year repayment period and monthly installments. This loan can be used without collateral. The street vendors will be qualified for an increased loan limit in the following cycle of the WC loan upon prompt or early repayment of this loan. Prepayment penalties are not applied to WC loans that are paid back early.
Rate of Interest
- The interest rate will be in accordance with the current rates of interest for Scheduled Commercial Banks, Small Finance Banks (SFBs), Regional Rural Banks (RRBs), Cooperative Banks, and SHG (self-help groups) Banks.
- The RBI’s guidelines for each lender category will govern the interest rates for Non-Banking Financial Companies (NBFCs), Non-Banking Financial Companies Finance Institutions (NBFC-MFIs), and other comparable entities.
- The interest rates would be applicable to the extent specified by the RBI guidelines for NBFC-MFIs with regard to MFIs (non-NBFC) and other lender categories that are not covered by them.
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When street vendors use the WC loan program, they are eligible for a 7% interest subsidy. The borrower’s account is credited with the interest subsidy amount on a quarterly basis. The interest subsidy is offered until March 31, 2022. Up until that point, the interest subsidy is available on both the initial and subsequent enhanced loans.
Promotion of Digital Transactions by Street Vendors
With the cash-back feature, this program encourages street vendors to switch to digital transactions. Vendors for digital transactions will be onboarded with assistance from the network of lending institutions and digital payment aggregators like Paytm, NPCI (for BHIM), GooglePay, AmazonPay, BharatPay, PhonePe, etc. The incentives for the onboarded vendors will take the shape of a monthly cashback of between Rs. 50 and Rs. 100.
Application For Loan Under PM Svanidhi Scheme
The street vendors must speak with a local Banking Correspondent (BC) or Agent of a Micro Finance Institution (MFI) in order to apply for WC loans under the PM Svanidhi scheme. These people are on a list that the ULBs will have. They will assist the street vendors with completing the application and uploading the necessary files to the relevant portals or mobile apps.
The following KYC documents are needed in order to apply for loans:
- ULBs may issue ID cards, certificates of vending, letters of recommendation, or TVCs.
- Any one of the following:
- The Adhaar card.
- Voter Identity card.
- driver’s license.
- MGNREGA credit card.
- PAN card.
- The Ministry of Housing and Urban Affairs has designated the Small Industries Development Bank of India (SIDBI) as its implementation partner for the administration of the scheme.
- For the purpose of implementing the scheme, SIDBI will make use of the network of lending institutions, which includes SCBs, RRBs, SFBs, Cooperative Banks, NBFCs, and MFIs.
PM SVANidhi Login Process
You can start the login process if you are a PM SVANidhi scheme beneficiary. All you need to do is use your login to access the PM SVANidhi scheme’s official website. To access the official webpage for this scheme, simply follow these steps:
- Step 1: Click “Login” after visiting the PM SVANidhi official website.
- Enter your password and username in step two. Await the arrival of an OTP.
- Step 3: Click “Submit” after entering the received OTP. You’ve entered your account information on the PM SVANidhi website successfully.
Once you’ve signed in, you can check the status of your loan application as well as the other program amenities.
Pre-Application Steps of the PM SVANidhi Scheme
You must finish the pre-application process by following these steps prior to applying for the Pradhan Mantri SVANidhi Yojana:
- You must comprehend loan requirements and thoroughly assess your business expenses.
- Make sure that your Aadhaar card and mobile number are connected. The OTP that you received on the phone number connected to your UID card will be needed to verify your identity.
- Make sure you meet the requirements by reviewing the eligibility criteria before applying for the scheme. Make sure you also have all the paperwork needed to prove your eligibility, such as the LoR or vending certificate.
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How to Check Your PM SVANidhi Loan Status Online?
Use the procedures listed below to find out the status of your PM SVANidhi loan survey:
- Step1. Go to the PM Swanidhi webpage.
- Step2. Select ‘Street Vendor Survey Search’.
- Step3. Please fill out the necessary information below:
- Your State and ULB name
- Vendor Certificate or ID card number
- Your name
- Your father’s or spouse’s name
- Aadhar-linked mobile number
- Step 4: To view the status of your survey, click the “Search” button.
Q. What is the interest rate of the PM SVANidhi 50,000 loan?
Ans- 50 000/-. Tenure: 18 months (EMI) at minimum; 36 months (EMI) at maximum. The interest rate is EBLR + 3.25%, with an effective interest rate of 11.30% per annum at the moment, subject to change at any time by the bank.
Q. What is the maximum amount of the SVANidhi scheme?
Ans- The Ministry of Housing and Urban Affairs provides full funding for the Central Sector Scheme, which aims to achieve the following goals: (i) To make working capital loans available for between Rs 10,000 and Rs 50,000. (ii) To encourage consistent repayment.
Q. Is pan mandatory for the PM SVANidhi scheme?
Ans- Any of the following documents may be carried for KYC purposes: (i) Voter ID card, (ii) driver’s license, (iv) MNREGA card, (v) PAN card, and (i) Aadhaar card. 15. To use the facility, who can I contact? You can give a toll-free number or speak with a member of SHG, ALF, or CLF.
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