PM Street Vendor‘s AtmaNirbhar Nidhi is a central sector micro-credit scheme launched by the Ministry of Housing and Urban Affairs on June 1, 2020. The scheme has been initiated with the aim to provide financial assistance to street vendors in the form of collateral-free working capital loans. These loans help vendors restart and expand their businesses and support the promotion of digital transactions.
Loan Amounts:
- ₹10,000 for the first loan
- ₹20,000 and ₹50,000 for subsequent loans
- 7% interest subsidy
Additionally, vendors are provided with a cashback of ₹100 per month for adopting digital payments.
Objectives of PM SVANidhi
The scheme is a way to provide formalization, which improves street vendors’ finance and gives an opportunity to be developed within India’s urban economy. Street vendors hold a crucial part in the informal economy, contributing to making good and services affordably available to the resident of urban locations.
Typically, street vendors offer the market with products or services such as:
- Vegetables, fruits, street food, tea, pakodas, etc.
- Services like barber shops, cobblers, pan shops, and laundry services.
Benefits of PM SVANidhi
- Financial Support: Maximum of ₹10,000 to restart and scale up businesses.
- Low Interest Rate: Attractive loans at 7% interest.
- No Collateral: No collateral is taken while granting these loans.
- No processing fees are paid at the time of applying.
- Loan Flexibility: Loans can be used for business needs, such as raw materials, rent, or equipment.
- Digital Empowerment: Cashback for vendors adopting digital payment systems.
- Repayment Period: A one-year repayment window.
- National Implementation: Available to street vendors across all States and Union Territories of India.
Eligibility Criteria
The following vendors are eligible to apply for the scheme:
- Vendors with a Certificate of Vending/Identity Card issued by Urban Local Bodies (ULBs).
- Vendors identified in surveys but without the Certificate of Vending/Identity Card.
- Vendors with a Letter of Recommendation (LoR) from ULBs/TVCs.
- Vendors from peri-urban/rural areas with a Letter of Recommendation from the ULB/TVC.
Application Process
Online Application:
- Visit the official website: PM SVANidhi Portal
- Click on “Log In” and enter your mobile number and captcha.
- After successful login, select your vendor category and enter the Survey Reference Number (SRN).
- Fill the application form and upload the required documents.
- Submit the form online.
For more details, refer to the User Manual or call 1800111979 between 9:30 AM and 6:00 PM (Mon-Sat).
Documents Required
For First Loan:
- Category A and B Vendors: Certificate of Vending, Identity Card
- Category C and D Vendors: Letter of Recommendation
KYC Documents (Required for all vendors):
- Aadhaar Card
- Voter ID
- Driving License
- PAN Card
For Letter of Recommendation (LoR):
- Account Statement or Passbook
- Membership Card or other membership proof
- Any additional document validating vendor status
For Second Loan:
- Loan Closure Document
Frequently Asked Questions (FAQs)
- What is PM SVANidhi?
PM SVANidhi is a micro-credit scheme providing working capital loans to street vendors to help them restart or expand their businesses. - What is the interest rate?
The loan comes with a 7% interest rate. - Can the loan be used for any purpose?
Yes, the loan can be used for business-related expenses such as purchasing raw materials, rent, or equipment. - Is there any collateral required?
No, collateral is not required for the loan. - What is the repayment period?
The loan is to be repaid within one year. - Can I apply for a loan if I have a loan from another government scheme?
Yes, vendors can apply even if they have availed a loan from another government scheme.
Sources and References
- PM SVANidhi Guidelines: Guidelines
- Official Website: PM SVANidhi Portal
- User Manual: Download User Manual
- Offline Application Form: Offline Form
- Helpdesk: Call 1800111979, Mon-Sat, 9:30 AM – 6:00 PM
The PM SVANidhi scheme is a significant step in enhancing the livelihoods of street vendors through Affordable Credit, Digital Empowerment, and Enhanced Livelihood. Apply today to secure the support you need to grow your business!