PM SVANidhi Scheme: Collateral-Free Loans Empowering Street Vendors

Launched in 2020, the PM SVANidhi Scheme is a government initiative aimed at providing financial assistance to street vendors. This scheme offers easy access to collateral-free working capital loans, starting from ₹10,000, with opportunities to increase the loan amount to ₹20,000 and ₹50,000 in subsequent phases.

The scheme, introduced by the Ministry of Housing and Urban Affairs (MoHUA) on June 1, 2020, not only provides affordable credit with a 7% interest subsidy but also promotes the adoption of digital transactions among vendors, fostering business growth and stability. The primary goal is to support street vendors in sustaining their livelihoods.

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Key Benefits of the PM SVANidhi Scheme

• Interest Subsidy: Get a 7% annual interest subsidy on timely loan repayments.
• Digital Cashback: Earn up to ₹1,200 cashback annually for using digital transaction methods.
• Loan Enhancement: Increase your loan amount by repaying on time or ahead of schedule.
• No Prepayment Penalties: Benefit from the flexibility of early loan repayment without any extra charges.

Eligibility Criteria for the PM SVANidhi Scheme

To qualify for the PM SVANidhi Scheme, street vendors must meet specific eligibility requirements:

• Vendors holding a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs).
• Vendors identified in ULB surveys, even without a Certificate of Vending or Identity Card.
• Vendors who commenced vending after the ULB survey or were excluded from it, provided they have a Letter of Recommendation (LoR) from the ULB or Town Vending Committee (TVC).
• Vendors from peri-urban or rural areas operating within ULB limits, possessing an LoR issued by the ULB or TVC.

This comprehensive approach ensures that both new and previously unregistered street vendors can avail of the scheme’s benefits.

Required Documents for PM SVANidhi Scheme Application

To access loans under the PM SVANidhi Scheme, vendors need to submit certain documents based on their category:

For Category A & B Vendors (Those with a Certificate of Vending or Identity Card from ULBs, or identified in ULB surveys):

• Certificate of Vending
• Identity Card

For Category C & D Vendors (Those with a Letter of Recommendation from ULB/TVC or from peri-urban/rural areas operating within ULB limits):

• Letter of Recommendation (LoR)
• KYC documents such as:
  • Aadhaar Card
  • Voter ID
  • Driving License
  • MNREGA Card
  • PAN Card

Additional documents for LoR holders include Account Statement/Passbook, Membership Card (or other proof of association), and a request letter to the ULB, among others. A loan closure document from the first loan is required for those applying for a second loan.

How to Apply for the PM SVANidhi Scheme

Applying for the PM SVANidhi Scheme is a straightforward process:

1. Visit the Official Website: Navigate to pmsvanidhi.mohua.gov.in.
2. Login: Click on the “Login” button on the homepage and select “Applicant”.
3. Enter Details: You will be redirected to the login portal. Enter your mobile number and captcha, then generate an OTP.
4. Select Vendor Category: Choose your appropriate category and enter your Survey Reference Number (SRN).
5. Complete the Form: Accurately fill out all required details.

Once submitted, your application will undergo processing, facilitating access to loans and related benefits for eligible vendors.

Disclaimer: This news article is based on publicly available information and may be subject to updates.