The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is a transformative initiative aimed at empowering street vendors by providing collateral-free loans. Launched on June 1, 2020, by the Ministry of Housing and Urban Affairs, it serves as a lifeline for urban and peri-urban vendors during and after the COVID-19 pandemic.
What Is the PM SVANidhi Scheme?
PM SVANidhi offers working capital loans of up to Rs 10,000 for an initial one-year period. Vendors repaying loans on time can avail of higher loans of up to Rs 50,000 in subsequent cycles. The scheme promotes digital transactions, fostering financial inclusion and supporting vendors in formalizing their businesses.
Benefits of PM SVANidhi Scheme
- Collateral-Free Loans: Loans without the need for guarantees.
- Interest Subsidy: A 7% annual subsidy credited quarterly.
- Digital Cashback Incentives: Up to Rs 1,200 per year for digital transactions.
- Higher Loan Cycles: Timely repayment leads to increased loan amounts, up to Rs 50,000.
As of December 8, 2024, the scheme has disbursed 94.31 lakh loans amounting to Rs 13,422 crore, with 40.36 lakh loans repaid, underscoring its success in uplifting street vendors.
Eligibility Criteria
To qualify for the scheme, applicants must:
- Be street vendors operating in urban areas as of March 24, 2020.
- Possess a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs).
- Have a provisional certificate or Letter of Recommendation if not listed in ULB surveys.
- Be vendors from peri-urban or rural areas vending within ULB jurisdiction.
Loan and Incentive Details
Loan amounts range from Rs 10,000 to Rs 50,000, with repayment periods between 18 and 36 months. Loans are provided by Scheduled Commercial Banks, Regional Rural Banks, Cooperative Banks, and other financial institutions. Digital transactions encourage vendors to adopt formal banking practices.
How to Apply
Vendors can apply for the scheme via the PM SVANidhi portal by:
- Checking their name in the ULB survey and obtaining a Survey Reference Number (SRN).
- Submitting necessary documents, such as identity proof and a certificate of vending.
- Tracking their application status using the application ID and registered mobile number.
The PM SVANidhi Scheme is a beacon of hope for millions of street vendors, promoting financial independence and inclusion. To apply, visit the official PM SVANidhi portal today!
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