In a country like India, where vibrant markets and street vendors have been an integral part of its culture and economy, the government’s focus on empowering these micro-entrepreneurs has always been crucial. In this regard, the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANIDHI) scheme has emerged as a revolutionary initiative to uplift the lives of street vendors and provide them with a pathway to self-reliance. This article delves into the key aspects of the PM SVANIDHI scheme, its objectives, benefits, and how it has positively impacted the lives of street vendors across the nation.
Understanding PM SVANIDHI
PM SVANidhi, launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA), is a central-sector micro-credit scheme designed to provide crucial support to street vendors. The primary objective of the scheme is to offer handholding assistance and empower street vendors by formalizing their businesses and providing them access to credit. Through PM SVANidhi, street vendors can avail a collateral-free working capital loan of ₹10,000, with the possibility of subsequent loans of ₹20,000 and ₹50,000, accompanied by a 7% interest subsidy.
A key focus of the scheme is to promote digital transactions among street vendors and increase India’s digital footprint. To incentivize the adoption of digital payment methods, the scheme offers a cashback of up to ₹100 per month to street vendors. This not only benefits the vendors but also contributes to the country’s digitalization efforts.
Street vendors are a vital component of the urban informal economy, and they play a significant role in ensuring the availability of various goods and services at affordable rates right at the doorstep of city dwellers. Known by various names such as vendors, hawkers, thelewala, rehriwala, theliphadwala, etc., they offer a wide range of goods, including vegetables, fruits, ready-to-eat street food, tea, pakodas, bread, eggs, textiles, apparel, footwear, artisan products, books, stationery, and more. Additionally, they provide essential services like barber shops, cobblers, pan shops, and laundry services.
Through the PM SVANidhi scheme, the government aims to uplift street vendors, formalize their businesses, and create new opportunities for them to progress economically. By empowering this sector, the scheme contributes to the overall growth and development of the urban economy while ensuring better access to goods and services for city residents.
Objectives of PM SVANIDHI Scheme
The PM SVANIDHI scheme is driven by several key objectives, including:
Financial Inclusion
PM SVANIDHI Yojana aims to promote financial inclusion by offering credit facilities to street vendors who usually have limited access to formal banking channels.
Collateral-Free Loans
One of the main highlights of the scheme is that it provides collateral-free working capital loans to street vendors, making it easier for them to avail of credit without pledging assets.
Alleviating Poverty
By providing access to credit and financial support, the scheme strives to uplift street vendors from the clutches of poverty and enhance their socio-economic conditions.
Stimulating Urban Economy
Street vendors play a significant role in the urban economy. The scheme aims to boost economic activities in cities and towns by encouraging street vendors to sustain and grow their businesses.
How PM SVANIDHI Yojana Works
Online PM SVANIDHI Portal – A User-Friendly Approach
SVANIDHI Scheme operates through an online portal, simplifying the application process for street vendors. They can register and apply for loans with ease, reducing bureaucratic hurdles.
Interest Subsidy
The SVANIDHI scheme provides an interest subsidy to beneficiaries who repay their loans promptly, encouraging responsible borrowing and financial discipline.
Digital Empowerment
To promote digital transactions, the scheme encourages the use of digital payment platforms among street vendors, further integrating them into the formal financial system.
Benefits Of PM SVANIDHI Loan
The PM SVANidhi Loan scheme offers a range of benefits to street vendors, ensuring their financial stability and growth in the challenging times of the COVID-19 pandemic.
- Financial Assistance: Street vendors receive valuable financial support of up to Rs. 10,000, enabling them to revitalize and expand their businesses effectively.
- Low-Interest Rate: The scheme provides loans at a low interest rate of 7%, easing the burden on street vendors and making the loan repayment process more manageable.
- No Collateral Required: As no collateral is needed to avail of the loan, it becomes easily accessible to street vendors, especially those who lack substantial assets.
- Zero Processing Fee: The scheme stands out for its cost-effectiveness as it does not charge any processing fee during the application process, easing the financial burden on street vendors further.
- Flexible Use of Funds: Street vendors have the freedom to utilize the loan amount for various business-related purposes, including purchasing raw materials, paying rent, or acquiring essential equipment.
- Enhanced Financial Independence: By offering financial stability, the scheme empowers street vendors to become self-reliant entrepreneurs, fostering their growth and prosperity.
- Ample Repayment Time: The loan comes with a reasonable repayment period of one year, providing street vendors with sufficient time to repay the loan without undue pressure.
- Promotion of Entrepreneurship: PM SVANIDHI encourages entrepreneurship among street vendors, laying the foundation for the creation of more employment opportunities within local communities.
- COVID-19 Recovery Support: The scheme specifically targets street vendors affected by the pandemic, extending a helping hand in their recovery from the economic impact caused by COVID-19.
- Nationwide Reach: Implemented at the national level, PM SVANidhi is accessible to street vendors in all States and Union Territories, ensuring that vendors across the country can benefit from its provisions.
In summary, the PM SVANidhi scheme offers a comprehensive package of financial aid, easy terms, and broad accessibility, making it a lifeline for street vendors as they endeavor to rebuild and thrive in the post-pandemic era.
Eligibility For PM SVANIDHI Scheme
To avail of the benefits of the PM SVANIDHI Scheme, street vendors must meet certain eligibility criteria, as follows:
- Possession of Certificate of Vending / Identity Card: Street vendors who possess a valid Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs) are eligible to participate in the scheme.
- Identified Vendors without Certificate: Vendors who have been identified in the official survey but have not yet been issued a Certificate of Vending or Identity Card are also eligible to apply for the scheme.
- Post-Survey Startups with Letter of Recommendation: Street vendors who were not included in the ULB-led identification survey or commenced their vending activities after the survey’s completion can still qualify for the scheme if they hold a Letter of Recommendation (LoR) issued by the ULB or the Town Vending Committee (TVC).
- Peri-Urban/Rural Vendors with LoR: Even vendors from surrounding development, peri-urban, or rural areas who conduct vending within the geographical boundaries of ULBs can be eligible if they possess a Letter of Recommendation (LoR) issued by the ULB or the Town Vending Committee (TVC).
The eligibility criteria are designed to encompass various scenarios, ensuring that deserving street vendors from different backgrounds and locations can access the support provided by the PM SVANIDHI Scheme. By including both certified vendors and those with proper recommendations, the scheme aims to extend its reach and assist a diverse range of street vendors in improving their livelihoods.
Documents Required For PM SVANIDHI Scheme
To avail of the 1st Loan:
For Category A and B vendors:
- Certificate of Vending
- Identity Card
For Category C and D vendors:
- Letter of Recommendation
In addition to the respective CoV/ID/LoR, the following KYC documents are required:
- Aadhaar Card
- Voter Identity Card
- Driving License
- MNREGA Card
- PAN Card
To apply for the Letter of Recommendation, vendors need to submit the following documents:
- Copy of Account Statement/Passbook
- Copy of Membership Card/any other proof of membership
- Any other document substantiating the claim as a vendor
- A request letter addressed to the Urban Local Body (ULB)
For the 2nd Loan:
- Loan Closure Document
These documents are essential for the successful application and processing of loans under the PM SVANidhi scheme. By providing the necessary documentation, street vendors can avail the financial support they need to grow their businesses and improve their economic prospects.
PM SVANIDHI Online Application Process
The PM SVANIDHI scheme offers a convenient online application process for street vendors seeking financial assistance. Follow these steps to apply:
Step 1: Visit the official website at https://pmsvanidhi.mohua.gov.in/ and locate the “Apply for Loan” button on the homepage.
Step 2: Register by providing essential details like your name, Aadhaar registered mobile number and other required information. Your mobile number will undergo verification via OTP.
Step 3: Upon successful registration, log in to the portal using your verified mobile number and password. Fill in the application form with all necessary details, including personal information, business particulars, and bank account details. Upload the requisite documents as specified.
Step 4: Before submitting the application, ensure that you agree with the declaration policy by clicking on the provided checkbox. Once submitted, the system will generate an application number and a request will be forwarded to the respective Urban Local Body (ULB). Remember to save the application number for future reference and click “Done.”
Step 5: After submitting the application, you’ll have the option to print or download it and track its status. If your application gets approved, the sanctioned loan amount will be credited to your registered bank account.
By following this straightforward online application process, street vendors can avail themselves of the necessary financial support to revitalize and expand their businesses under the PM SVANIDHI Yojana.
FAQs (Frequently Asked Questions)
Who is eligible to apply for PM SVANIDHI?
Any street vendor who holds a valid vending certificate can apply for PM SVANIDHI.
How can street vendors benefit from the scheme?
Street vendors can avail of collateral-free loans, which can be used for their businesses’ working capital requirements.
Is the interest subsidy a one-time benefit?
No, beneficiaries can avail of the interest subsidy on a monthly or quarterly basis, depending on their repayment schedule.
Is there any provision for loan repayment flexibility?
Yes, street vendors can choose the repayment tenure as per their convenience, up to a maximum period defined by the scheme.
Are rural street vendors eligible for the scheme?
No, the PM SVANIDHI scheme is currently applicable only to urban and peri-urban areas.
Sources And References
Guidelines: Click Here.
Download the Application Form: Click Here.
Check your application status: Click Here.
Frequently Asked Questions (FAQs): Click Here.
