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 aims to formalize the street vending sector, boost digital transactions, and enhance the economic sustainability of street vendors by offering collateral-free working capital loans. Additionally, to promote digital adoption, street vendors receive a cashback of up to ₹100 per month for digital transactions.
Benefits
- Loan Assistance:
- Initial working capital loan of ₹10,000.
- Subsequent loans of ₹20,000 and ₹50,000, as per eligibility.
- Interest Subsidy:
Loans are provided at a subsidized interest rate of 7%. - Collateral-Free:
No collateral is required. - Cost-Effective:
No processing fee is charged. - Usage Flexibility:
Loan amounts can be used for purchasing raw materials, paying rent, acquiring equipment, etc. - Digital Incentive:
Cashback incentive of up to ₹100 per month to encourage digital transactions. - Repayment Period:
The loan has a repayment period of one year. - Overall Impact:
The scheme supports entrepreneurship, creates employment opportunities, and helps street vendors recover from the economic impact of the COVID-19 pandemic.
Eligibility
- Vending Proof:
- Street vendors in possession of a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs).
- Vendors identified in the ULB survey who have not been issued a Certificate of Vending/ID but can provide a Letter of Recommendation (LoR) from the ULB/Town Vending Committee (TVC).
- Vendors from surrounding development, peri-urban, or rural areas vending within the ULB limits with an LoR from the ULB/TVC.
- Other Requirements:
- Must be a street vendor as per the ULB’s criteria.
- No collateral requirement.
Application Process
Online Process
- Login:
- Visit PM SVANidhi Official Portal and click on the “Log In” button.
- OTP Authentication:
- Enter your mobile number and captcha, then click “Request OTP”.
- Vendor Category & SRN:
- After successful login, select the valid vendor category and enter your mandatory Survey Reference Number (SRN).
- Application Form:
- Fill in the online application form with the required details.
- Upload the relevant documents in the specified file format.
- Submission:
- Click “Submit Request”. An Application ID will be generated and sent to your registered email for reference.
- Status Tracking:
- You can check your application status via the portal under the “Application Status” section.
Offline Process
- Some vendors may also have access to offline assistance through designated helpdesks or support centers. For detailed offline procedures, refer to the user manuals provided on the portal.
Documents Required
- For Category A and B Vendors:
- Certificate of Vending.
- Identity Card issued by the ULB.
- For Category C and D Vendors:
- Letter of Recommendation (LoR) from ULB or TVC.
- KYC Documents: (for all categories)
- Aadhaar Card.
- Voter Identity Card.
- Driving License.
- MNREGA Card.
- PAN Card.
- Additional Documents for LoR Verification:
- Copy of recent bank account statement or passbook.
- Copy of membership card or any proof of membership.
- A request letter to the ULB (if applicable).
- For Second Loan:
- Loan Closure Document.
Frequently Asked Questions
- What is PM SVANidhi Scheme?
It is a central-sector micro-credit scheme aimed at providing collateral-free working capital loans and promoting digital transactions among street vendors. - Who is eligible to apply?
Street vendors possessing a Certificate of Vending/ID or a Letter of Recommendation (LoR) from the ULB/TVC, including those from peri-urban/rural areas vending within ULB limits. - What is the maximum loan amount available?
The initial loan is ₹10,000, with subsequent loans available up to ₹20,000 and ₹50,000. - What is the interest rate on the loan?
The loans are provided at a subsidized interest rate of 7%. - Is there any processing fee?
No, there is no processing fee to apply. - What is the repayment period for the loan?
The repayment period is one year. - Is collateral required for the loan?
No, the scheme is collateral-free. - Can the loan be used for any purpose?
Yes, the loan amount can be used for various business-related purposes such as buying raw materials, paying rent, or purchasing equipment. - What digital benefits are provided?
Street vendors receive a cashback of up to ₹100 per month to encourage digital transactions. - How do I apply?
Apply online via the official PM SVANidhi portal. Detailed steps and user manuals are available on the portal. - Can an individual apply for multiple loans under this scheme?
Yes, but guidelines regarding multiple applications and eligibility for subsequent loans must be followed.