PM SVANidhi: Require affordable working capital loan? Check eligibility, features, documents required and other details

Pradhan Mantri Street Vendor Atmanirbhar Yojana (PM SVANidhi) is a central sector scheme to facilitate street vendors in accessing affordable working capital loan for resuming their livelihoods activities.

The outbreak of Covid-19 pandemic and subsequent lockdowns have adversely affected the livelihoods of street vendors. They usually work with a small capital base and therefore credit for working capital to street vendors will be helpful to resume their livelihoods.

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Here is all you need to know about the scheme:

Features of the scheme:

1. To facilitate working capital loan up to 10,000 for a tenure of one year at subsidized rate of interest

2. Interest subsidy on timely/ early repayment @ 7%

3. Monthly cash-back incentive on digital transactions

4. Higher loan eligibility on timely repayment of the first loan.

Target beneficiary for the Scheme?

Street vendors/hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas.

Who is a Street Vendor/hawker?

Any person engaged in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement etc., from a temporary built up structure or by moving from place to place. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, artisan products, books/ stationary etc. and the services include barber shops, cobblers, pan shops, laundry services etc.

Which lending institutions will provide credit?

Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions and SHG Banks.

What is the tenure of the Scheme?

The Scheme shall be implemented up to March, 2022.

What are the eligibility criteria of the scheme?

All street vendors engaged in vending in urban areas as on or before March 24, 2020 can avail the loan. There are four categories by which beneficiary’s eligibility is identified:

i. Street vendors having certificate of vending / Identity Card issued by Urban Local Bodies (ULBs);

ii. Who have been identified in the survey but have not been issued Certificate of Vending / Identity Card;

iii. Street Vendors, who has not been identified or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) by the ULB / Town Vending Committee (TVC); (Service yet to be launched)and

iv. Vendors nearby to the developing cities or on the boundaries of rural urban areas working within the limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC

What are the requirements from the beneficiary to apply in the scheme?

a. Proof of Vending

i. Vendor ID card (VID)or

ii. Certificate of vending (CoV) or

iii. TVC Letter of recommendation

b. KYC documents

c. Aadhaar linked bank account

d. Mobile number should be linked with Aadhaar

What are the KYC documents required for the scheme?

i. Aadhaar Card

ii. Voter’s Identity Card

iii. Driving Licence

iv. MNREGA Card

v. PAN Card.

How can you apply for the loan?

You can approach a Banking Correspondent (BC)/ Agent of Micro Finance Institution (MFI) in your area (ULBs will have the list of these persons). They will help you in filling up the application and upload the documents in a Mobile App/ Portal.

Is any collateral to avail this loan?

No collateral security is required.

Will I get Identity Card for use?

Yes, you will be issued Provisional Identity Card on approval of loan and permanent CoV/ID will be issued within 30 days.

How long it will take to get the loan approved?

Complete process will be automated through a Mobile App and Web Portal. You will be able to check real time status of your application. Whole process, if paper/ information is complete, may take less than 30 days.