PM SVANidhi Scheme: PM Street Vendor’s Aatmanirbhar Nidhi scheme (PM SVANidhi)

What is PM SVANidhi Scheme?

PM Street Vendor’s Aatmanirbhar Nidhi scheme (PM SVANidhi Scheme) is a government initiative by Government of India to help poor and marginalized Street Vendors to grow their micro businesses. Aatmanirbhar nidhi is the first such loan product for street vendors in India.

The PM SVANidhi Scheme is a scheme launched by the Prime Minister of India, Narendra Modi on 15th August, 2019.

On June 1, 2020, The Ministry of Housing and Urban Affairs announced the launch of the PM Street Vendor’s AtmaNirbhar Nidhi, known as PM SVANidhi Scheme.

The main motive is to provide collateral-free and at low-interest rates working capital credits to the street vendors of the country to resume their businesses and help in these dire times of need.

The scheme is for the financial assistance of street vendors in India. The objectives of the scheme are to provide financial assistance to street vendors for setting up or upgrading their business, to provide credit guarantee cover to banks for lending money to street vendors and to create an institutional mechanism for the development and welfare of street vendors.

The features of the scheme include provision of interest subsidy, collateral-free and at low-interest rates, credit guarantee cover and easy application process.

The eligibility criteria for the scheme are that the applicant should be a street vendor registered with a municipality/urban local body (ULB) in India, should be in the age group of 18-60 years and should not be a regular salaried person.

The applicant should also have good moral character and good credit score with the lending institution/lending agency (ULB or bank).

Objectives of PM SVANidhi Scheme:

The objectives of the scheme are as follows:

• To enable them to organize themselves into co-operatives and self-help groups.
• To provide collateral free credit to registered members of SHGs/Co-operative societies for setting up a business or to retain their existing vocations.
• To strengthen the financial status of marginalised community by providing them credit at cheap rate from organized sector.
• To facilitate credit to SHGs/Co-operative societies for serving the needs of its members and to mobilize savings and credit from other sources.
• To help in improving their socio-economic status and enable them to lead a respectable life.

Features of PM SVANidhi Scheme:

The scheme offers collateral free loans up to Rs.25000( in rural areas) and Rs.50000( in urban areas) to registered members of selfhelp groups which have been actively involved in its activities for at least six months.

For this, the borrowing group should have a Joint Liability Group Guarantee from other SHG members taking part in the lending process.

Eligibility Criteria for PM SVANidhi Scheme:

Any person above 18 years of age and belonging to Scheduled Caste, Scheduled Tribe or Other Backward Class is eligible for the scheme.

However, a member of these categories who has an annual income of Rs.1 lakh from any other source will not be eligible for benefits under the scheme.

The beneficiaries will be identified according to the following eligibility criteria:

Only the street vendors recognized by the Urban Local Bodies and/or the ones possessing the ULB issued Identity card or Certificate of Vending.

The Vendors haven’t received a Certificate or Identity card but have been recognized in the survey will be provided with a Provisional Certificate of Vending.

Street vendors have been issued with the Letter of Recommendation (LoR) by the ULB or TVC.

Street vendors in possession of an Identity card or Certificate of Vending issued by Urban Local Bodies (ULBs)

List of Lending Institutions:

The list of lending institutions that are registered under the scheme is as follows:

1. National Bank for Agriculture and Rural Development (NABARD)

2. State Cooperative Banks

3. National Cooperative Union of India Limited (NCUI)

4. Regional Rural Banks (RRBs)

5. Scheduled Commercial Banks

6. Scheduled Primary Agricultural Credit Societies (PACS)

7. Self-Help Groups as per format specified by the Central Government as can be got from any of the lending institutions mentioned above and has been registered under the SHG Act, 2005.

Documents Required by the Urban Local Body to Generate Letter Of Recommendation:

1. A list of members who have applied for loan and their photographs, duly signed by the member as per format specified by the Central Government.

2. List of signatures/thumb impressions of all members in a meeting to whom loans are proposed to be sanctioned along with their photographs and duly signed/thumb-impressed by the member as per format specified by the Central Government

3. A copy of any document such as ration card, Aadhaar card, MNREGA card,  voter identity card or electricity bill which will establish proof of residence

4. Copy of PAN Card

5. Photo Consent Slip from each borrower/guarantor for sharing their photograph with ULB and lending institution

6. Address proof of each member

7. No dues certificate from the lending institution registering under PM SVANidhi Scheme, where such dues exist

8. Application form duly filled in and signed by the head of the SHG/Co-operative Society or his authorized representative with a photograph affixed (can be downloaded from website) 

9. Any other document/information required by the ULBs to sanction/reject loan

Rate of Interest of PM SVANidhi Scheme:

The rate of interest on the amount advanced is as per RBI guidelines and as per their prevailing rates of interest.

This will be adjusted by National Bank for Agriculture and Rural Development (NABARD) towards interest subsidy of 2%, which is to be borne by the Central Government.

Interest Subsidy in PM SVANidhi Scheme:

The interest subsidy is available up to 31 March 2022. The street vendors can get an interest subsidy at 7%  who avail of WC loan under the scheme. The interest subsidy amount is credited to the account of borrower every quarter.

Credit Guarantee in PM SVANidhi Scheme:

The scheme thinks about the vendors and lenders also by providing credit risk mitigation to the lenders. This will be operated on a portfolio basis. Here are more details on the portfolio:

15% of the year portfolio will be given as a guarantee coverage.

For beyond 5% 75% of default portfolio, up to 15% second loss

For up to 5% first loss default: 100%

How to Apply for the SVANidhi Scheme:

To apply for loans under SVANidhi Scheme, all the eligible street vendors require contacting to nearest bank of their areas. Common Service Centre (CSC) also helps the vendors to apply and process loan application.

There are two ways for applying, one through the official portal – https://pmsvanidhi.mohua.gov.in/ and another through the mobile app. It is very important to check and verify the status of eligibility before appying for the loan under this scheme.

The loan application form, duly filled in and signed by the borrower  with photograph affixed (can be downloaded from website), is to be submitted directly to the lending institution (the list provided above).

The list of members and their photographs will be generated by the lending institution during verification of each member’s identity.

Documents Required for Application:

The list of documents required while applying for a loan under this scheme is as follows:

1. Address proof such as ration card, Aadhaar card, voter identity card or electricity bill which establishes the address of the beneficiary.

2. No dues certificate from the lending institution.

3. Personal photo identification such as Aadhaar card, voter identity card or passport which establishes the identity of the beneficiary.

4. Borrower photo consent slip with photograph and address which is to be submitted by borrower while applying for a loan under this scheme.

Why choose SVANidhi Scheme?

It is comparatively easier to start a business than to relaunch a business. The recent conditions due to the pandemic have shattered and disintegrated the industries. But at the same time, a huge need for essential materials is also arising.

This demands new opportunities and larger growing spaces. With the working capital loan provided by PM Svanidhi Yojana, street vendors get elbow room to restart their business and flourish in the market.

These loans, as we know by now, are lucrative, profitable, cost-efficient and allow vendors to restart their lives on a positive and stress-free note.

Looking at the figures, a total of 41,66,224 applications have been submitted, out of which 24,05,408 have been approved. The total amount disbursed is 20,52,432.

Therefore, it can be rest assured that the scheme is reaching out to the right masses in the right possible manner, with time and stipulated time.

PM SVANidhi Yojana Online Application Form

You can download PM Svanidhi Yojana loan application form from the PM SVANIDHI Scheme Portal at http://pmsvanidhi.mohua.gov.in/. (official website)

If you’re a street vendor in India, the PM Street Vendor’s Aatmanirbhar Nidhi scheme may be just what you need to start your own business.

This micro-credit facility has been created specifically for vendors who are not able to access any other form of credit or loans due to their occupation.

The benefits? You will have up to Rs 50,000 per month available with no interest charged on loan repayments until 2020!

Apply today and use this funding opportunity as an investment into your future success.

Conclusion paragraph: If you’re a street vendor who sells on the side of the road, this may be your lucky day.

The government is providing micro-credit facilities for those in this position! This special micro-credit facility has been created to help vendors like these make their way out of poverty and build new lives.

To apply or find more information about PM SVANidhi, visit official website at https://pmsvanidhi.mohua.gov.in/

PM Street Vendor’s Aatmanirbhar Nidhi scheme (PM SVANidhi) is a special micro-credit facility for street vendors.

It was launched by Prime Minister Narendra Modi on his 66th birthday, September 17, 2018 in New Delhi.

The credit will be given to the families of these self-employed people and will be used only for their business needs such as inventory or furniture etc.,

This new initiative has been welcomed by all sections of society including traders’ associations who have appreciated that it would help them flourish.

In addition to this, there are also other benefits associated with this project like opening bank accounts at zero balance which is currently free from any charges up to Rs1 lakh under PM Street Vendor’s Aatmanirbhar Nidhi scheme (PM SVANidhi scheme).

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