Launched by the Ministry of Housing and Urban Affairs on June 1, 2020, the PM Street Vendor’s AtmaNirbhar Nidhi or PM SVANidhi scheme was started to provide affordable working capital loans to street vendors to resume work post-Covid-19 lockdowns and empower their livelihoods. The scheme is available until March 24, 2022.
According to the ministry website, the scheme intends to give away collateral-free working capital loans of up to Rs 10,000 to around 5 million vendors to help resume their businesses.
It also added that almost 2 million applications have been received of which 752,191 already sanctioned and 218,751 loans disbursed.
INCENTIVES
1. Interest subsidy at 7 per cent annually on regular loan repayment.
2. Rs 1,200 cashback per annum on digital transactions.
3. Vendor can raise the credit limit on timely or early repayment of the loan.
4. There will be no penalty on the early repayment of the loan.
STEPS FOR APPLICATION
The scheme provides three pre-application steps for the vendors to check for the application. They can either apply on PM SVANidhi portal or a nearby Common Service Centre.
Three things to check:
1. Understand loan application requirements.
2. Mobile number must be linked to Aadhaar.
3. Check whether or not the vendor is eligible as per rules.
ELIGIBILITY
1. Street vendors must have a Certificate of Vending or identity card issued by Urban Local Bodies (ULBs).
2. The vendors who are identified under the ULB survey but do not possess a certificate. ULBs are advised to issue such certificates positively within a month.
3. Those who were left out of the survey or started their business after it and has been issued a Letter of Recommendation by the ULB or Town Vending Committee (TVC).
4. The vendors in the geographical limits of the ULBs and have been issued a Letter of Recommendation to that effect by the ULB or TVC.
