PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a scheme launched by the Government of India for street vendors.
The primary focus of PM SVANidhi is to provide affordable collateral-free working capital loans to street vendors who were affected due to the COVID-19 lockdown. This scheme has been launched under the Ministry of Housing and Urban Affairs by the Government of India, targeting over 50 lakh street vendors across urban areas in India.
In this article, we will discuss the objectives, eligibility criteria, and application process of PM SVANidhi in detail.
What Is the Prime Minister SVANidhi Scheme?
The PM SVANidhi scheme was launched on June 1st, 2020 by the Ministry of Housing and Urban Affairs with an aim to support street vendors in India.
It is a special micro-credit facility that provides working capital loans of up to Rs. 10,000 to street vendors who were affected by the COVID-19 lockdown. These loans are collateral-free, meaning that the vendors do not have to provide any security or guarantor for the loan.
The scheme also offers an interest subsidy of 7% per annum to those who make timely repayments on their loans. Additionally, in order to encourage digital transactions and promote financial inclusion, PM SVANidhi provides incentives in the form of cashback on digital transactions.
Objectives of PM SVANidhi
The main objective of the Prime Minister SVANidhi scheme is to support and empower street vendors by providing them with affordable credit facilities. It aims to provide financial assistance to street vendors who were affected due to the COVID-19 pandemic and help them resume their livelihoods.
This scheme also aims to bring street vendors into the formal financial system and encourage them to adopt digital modes of payment. By providing incentives for digital transactions, PM SVANidhi aims to promote financial inclusion and reduce the reliance on cash-based transactions.
Eligibility Criteria
In order to avail of the benefits of PM SVANidhi, street vendors need to fulfill certain eligibility criteria including:
- The vendor should have been doing business as on or before March 24th, 2020.
- The vendor must possess a valid identity proof such as an Aadhaar card, Voter ID card, etc.
- The vendor should not own a shop, permanent stall, or any other form of fixed business establishment.
- The vendor’s business must be located in the urban areas as per the definition of the 2011 census.
- The vendor’s age must be between 18 to 60 years.
Application Process
The application process for PM SVANidhi is simple and can be done through the Common Service Centers (CSCs) or by registering on the official website.
To apply through CSCs, the street vendors need to visit their nearest CSC and provide necessary documents such as identity proof, address proof, and a recent photograph. The CSC agent will assist in filling out the application form and uploading the required documents.
To apply through the official website, street vendors need to visit https://pmsvanidhi.mohua.gov.in/ and click on ‘New Applicant Registration’. They need to provide their basic details including their Aadhaar number, and mobile number, and an OTP will be sent for verification. After successful registration, the vendor can fill out the application form and upload the necessary documents.
Benefis of PM SVANidhi
The PM SVANidhi scheme provides a number of benefits to street vendors including:
- Affordable collateral-free loans up to Rs. 10,000.
- Interest subsidy of 7% per annum for timely repayment.
- Incentives for digital transactions.
- Access to formal financial services and credit facilities.
- Encouragement towards adopting digital modes of payment.
Documents Required
The following documents are required to apply for PM SVANidhi:
- Aadhaar card
- Voter ID card
- Driving license
- PAN card
- Bank account details
- Address proof (utility bill, rent agreement, etc.)
Eligible States
The Scheme is applicable to beneficiaries from States/Union Territories that have implemented the Rules and Scheme under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
FAQs
There are some questions frequently asked about the PM SVANidhi scheme, and here are the answers to some of them:
Q1. What is the interest rate charged under PM SVANidhi?
Ans: The interest rate charged under PM SVANidhi is 0%.
Q2. How much subsidy will be provided on timely repayment?
Ans: An interest subsidy of 7% per annum will be provided on timely repayment.
Q3. How can I apply for PM SVANidhi?
Ans: You can apply for PM SVANidhi through the Common Service Centers (CSCs) or by registering on the official website.
Important Facts about PM SVANidhi
- PM SVANidhi is a special micro-credit facility launched by the Ministry of Housing and Urban Affairs.
- It aims to provide affordable collateral-free working capital loans to street vendors affected by the COVID-19 lockdown.
- The scheme offers an interest subsidy of 7% per annum for timely repayments and incentives for digital transactions.
- Street vendors between the age of 18 to 60 years are eligible for this scheme.
- The application process can be done through CSCs or by registering on the official website.
- Aadhaar card, address proof, and bank account details are some of the necessary documents required for the application.
- The Scheme is applicable to beneficiaries from States/Union Territories that have implemented the Rules and Scheme under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
Conclusion
We hope this article helped you get the best information about PM SVANidhi. This scheme is a ray of hope for street vendors affected by the COVID-19 pandemic, providing them with much-needed financial assistance and encouraging them to adopt digital modes of payment.
If you are also a street vendor, make sure to check your eligibility and apply for this scheme to avail of its benefits.
If you have any doubts or queries regarding PM SVANidhi, you can visit the official website or contact your nearest CSC for assistance.
