PM SVANidhi Scheme

PM Street Vendor’s AtmaNirbhar Nidhi Scheme (PM SVANidhi) is a collateral-free micro credit facility funded by the Ministry of Housing and Urban Affairs to provide loans to the street vendors/hawkers. This scheme was launched in June 1, 2020 with the objective of helping vendors/hawkers, adversely impacted by lockdown, to resume their livelihoods. Later this scheme was extended on March 2022 till December 2024 and was extended to all vendors/hawkers vending in the urban areas. The vendors are offered working capital loans under this scheme with an interest subsidy of 7% on timely/early repayments. Under this scheme, eligible street vendors and hawkers can avail working capital loans for loan amount of up to Rs 10,000 for tenure of up to 1 year in the first tranche of loan, loan amount of up to Rs 20,000 for tenures of up to 1.5 years in the second tranche of loan and loan amount of up to Rs 50,000 for tenures of up to 3 years in the third tranche of loan.

Features of PM SVANidhi Scheme

• The scheme provides loans to all street vendors/hawkers vending in urban areas.
• Applicants are eligible to get an interest subsidy @ 7% on early/timely repayment of the loan.
• Applicants can claim for interest subsidy on quarterly basis.
• The loan scheme is offered in three tranches, with the subsequent tranches being offered after the early/timely repayment of the previous tranche.

First Tranche Loan:

Loan Amount- Up to Rs 10,000;

Tenure- 1 year

Second Tranche Loan:

Loan Amount- Up to Rs 20,000

Tenure- Up to 1.5 years

Eligibility- Vendors who have done early and timely repayment of first tranche loans are eligible for second tranche of working capital loans

Third Tranche Loan-

Loan Amount- Up to Rs 50,000

Tenure- Up to 3 years

Eligibility- Vendors who availed prior two loan tranches are eligible for third tranche of working capital loans. To be eligible for the 3rd tranche of the loan, a minimum repayment period of 6 months have been set by the Union Ministry of Housing & Urban Affairs. Vendors repaying the second tranche loans in less than 6 months will have to complete the minimum repayment period to become eligible for the third tranche of working capital loans.

• The lending facility under this scheme is available till December 2024.
• The interest subsidy on the PM SVANidhi scheme will be available till March 2028.
• The scheme has a provision of cash-back incentives of Rs 1 per inward/outward on the first 100 digital transactions subject to maximum Rs 100 per month, i.e., Rs 1200 per year.
• The loans disbursed under this scheme are unsecured in nature and are covered under the the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) without any requirement of paying guarantee fee.

Eligibility Criteria for Applicants

Applicants fulfilling the following criteria are eligible for availing PM SVANidhi scheme:

• All street vendors vending in urban areas and having a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs) are eligible for PM SVANidhi scheme.
• Vendors who have not been issued Certificate of Vending/Identity Card but have been identified in the survey done by Urban Local Bodies can also avail loans under PM SVANidhi scheme.
• Vendors of surrounding development, peri-urban areas, rural areas who have been issued Letter of Recommendation by Urban Local Bodies/Town Vending Committee for vending in the geographical limits of Urban Local Bodies are eligible for this scheme.
• Street vendors who have not been identified by Urban Local Bodies or who have started vending after the completion of the survey and have been issued Letter of Recommendation for vending by Urban Local Bodies or Town Vending Committee can avail such schemes.
• Lenders do not consider the CIBIL/credit score while evaluating the loan application. However, the financial institutions may refuse the loan to a vendor, if any of his existing loan has turned into an NPA.

Documents Required for Availing Loans under PM SVANidhi Scheme

Below-mentioned are the documents required for availing loan under PM SVANidhi scheme:

• Certificate of Vending
• Identity Card
• Aadhaar Card (Except in Assam and Meghalaya)
• Voter ID Card (In Assam and Meghalaya)
• PAN Card
• MNREGA Card
• Driving License