Amidst the pandemic, in June 2020, the Central Government launched the PM Street Vendors Atma Nirbhar Nidhi (PM SVANidhi) scheme – to offer street vendors and hawkers financial aid. Under the aegis of this scheme, street vendors can avail of collateral-free loans amounting to Rs. 10,000 for a duration of one year.
We shall now delve into the features, objectives, and benefits of the PM SVANidhi scheme.
Features
- A scheme launched by the Central Government, with benefits extended up until March 2022.
- Under this scheme, street vendors and hawkers can opt for a business loan without collateral, of up to Rs. 10,000, at marginal rates of interest.
- In the case of timely or premature repayment of the loan amount, vendors are incentivised with higher loan amounts, as well as interest subsidies.
- The PM SVANidhi scheme also incentivises digital payment methods.
Benefits
The benefits of the PM SVANidhi Scheme are as listed below:
- Loan for Working Capital: Under the aegis of this scheme, you as a street vendor or hawker are eligible for a loan of up to Rs. 10,000, for a period of 1 year, at marginal rates of interest. Additionally, you can secure this business loan without collateral, meaning that you do not need to offer your assets as collateral.
- Subsidised Interest: When you avail of a loan under the PM SVANidhi Scheme, you can avail of an interest subsidy of 7%, which you will receive quarterly.
- Cashback Incentives Applicable on Digital Transactions: If you opt for the usage of digital transactions, you stand to receive attractive cashback incentives under the PM SVANidhi Scheme.
Eligibility Criteria
To avail of the benefits of the PM SVANidhi scheme, you must meet the following eligibility criteria:
- You, as a vendor, must be in possession of a Certificate of Vending or Urban Local Bodies (ULB) identity card.
- If you do not possess the above-mentioned identity card, you must obtain a Letter of Recommendation from the respective Municipal body.
- Under the PM SVANidhi scheme, vendors who possess the ULB identity card, but have left the area of operation owing to the pandemic, are also eligible to benefit from this scheme.
- Vendors who have not received a certificate of authentication from the Town Vending Committees but have been recognized by them by way of a Provisional Certificate are also eligible for the benefits of this scheme.
How Do You Apply for a Loan Under the PM SVANidhi Scheme?
If you wish to apply for a business loan without collateral under the aegis of the PM SVANidhi scheme, follow the pre-application steps mentioned below:
- Understand the requirements of the PM SVANidhi Scheme.
- Make sure that your registered mobile number is linked with your AADHAR card.
- Check the rules of the schemes and your eligibility against these rules.
Once you do so, follow the steps mentioned below to avail the benefits of the PM SVANidhi Scheme:
- Step 1: Start by visiting the official site of PM SVANidhi, and proceed by clicking on the ‘Apply for Loan’ tab.
- Step 2: Enter your registered mobile number and the Captcha code provided.
- Step 3: Next, select the category that is applicable to you and fill up the required information.
- Step 4: End the application process by clicking on the ‘Submit’ tab.
Documents Required to Apply for the PM SVANidhi Scheme
If you wish to apply for a business loan without collateral under the PM SVANidhi scheme, you must have the following documents handy:
- AADHAR Card
- PAN Card
- MNREGA Card
- Driving Licence
- Voter ID Card
- Certificate of Vending issued by the ULB or an LoR from the TVC or ULB