Budget 2024: What is PM-SVANidhi Scheme that Finance Minister Nirmala Sitharaman mentioned in her Budget speech

Union Budget 2024: When Finance Minister presents the Union Budget, every year, they mentioned such welfare schemes which either reach to the audience's consciousness for the first time or is not a popular term among masses.

But when people hear about those schemes, they got to know that these schemes are centered around changing the life of masses to a great extent.

Prime Minister Street Vendor’s AtmaNirbhar Nidhi. i.e. PM SVANidhi Scheme, is one such loan scheme from the central government, which got a mention by Finance Minister Nirmala Sitharaman during her Interim Budget 2024 speech on Thursday.

She said that the scheme has provided credit to as many as 78 lakh street vendors, among whom, 2.3 lakh vendors got credit for the third time.

In this write-up, know what is PM-SVANidhi Scheme and who gets benefit under it?    

What is PM-SVANidhi Scheme?

The government launched PM-SVANidhi Scheme as part of the Atmanirbhar Bharat Abhiyan to provide loans to street vendors affected by the COVID-19 pandemic.

Under PM-SVANidhi Scheme, the government grants loans up to Rs 50,000 to street vendors.

The loan is collateral free, which means the vendors do not need to pledge anything with the bank for the loan.

The loan is available in three installments. The borrower vendor needs to repay the loan within 12 months.

To start a business under this scheme, a loan of up to Rs 10,000 is applied for the first time.

If the money is repaid on time, the vendor becomes eligible for a loan of double the amount i.e. up to Rs 20,000, and in the third time, they can take a loan up to Rs 50,000.

How to apply for PM-SVANidhi Scheme?

Vendors can apply to any government bank to take loan under the PM-SNAVidhi Scheme.

For this, one has to fill the of the PM-SVANidhi Scheme, attach the photocopy of their Aadhaar card and submit it at the bank.

To get the benefit of this scheme, it is mandatory for a vendor to have Aadhar card.

Apart from this, it is also necessary to have a mobile number and a bank account.

Once the loan is approved, the vendor gets the first installment of the loan credited to their account.