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The Indian government launched the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme to offer credit access to street vendors. Launched on June 01, 2020, the scheme aims to provide an economic boost to street vendors in India by offering them working capital loans in the aftermath of the pandemic. Vendors can apply for a loan of up to ₹10,000 for a tenure of one year through this scheme without having to pledge any collateral. In order to incentivise digital transactions, vendors are also given rewards in the form of cashback if they process transactions digitally. The PM SVANidhi scheme has supposedly helped over 50 lakh street vendors across the nation.

Key Facts About the PM SVANidhi Yojana

Some of the important facts about the PM SVANidhi Yojana are mentioned below:

Full Form of the Scheme

Prime Minister Street Vendor's AtmaNirbhar Nidhi

Executing Ministry

Ministry of Housing and Urban Affairs (MoHUA), Government of India

Scheme Launch Date

June 01, 2020

Scheme Tenure

Originally, the scheme was valid till March 2022; later, it was extended till December 2024.

Target Beneficiaries

All street vendors who have been in the business in urban areas since March 24, 2020.

Link of the Official Website to Avail the Benefits

https://pmsvanidhi.mohua.gov.in/

 

Objectives of the PM SVANidhi Scheme

The PM SVANidhi Scheme is intended to benefit street vendors by helping them revive their businesses so that they can move up the economic ladder and make way for new opportunities. Some of the key objectives of the scheme are:

  • To fulfil the working capital needs of street vendors by providing them unsecured loans of up to ₹10,000

  • To incentivise regular loan repayments as per the schedule

  • To reward vendors with cashbacks if they process the payments digitally

Features of the PM SVANidhi Yojana

Some of the salient features of the PM SVANidhi Scheme are as follows:

  • Loan Amount: Street vendors can avail a loan of up to ₹10,000 to fund their working capital needs and keep their business running smoothly.

  • Repayment Tenure: The repayment tenure of a loan under the PM SVANidhi Scheme is up to 1 year (12 months).

  • Prepayment Benefit: If the vendor chooses to repay the entire loan amount before the scheduled date, they get a subsidy of 7% on the interest amount which is credited to their bank account through DBT (Direct Benefit Transfer).

  • Collateral-Free Loan: As mentioned earlier, the loans availed under the PM SVANidhi Scheme are unsecured and the applicant need not pledge any collateral.

  • Incentive for Digital Transactions: In order to promote digital transactions, the government provides a cashback of up to ₹1,200 per annum if the vendor processes the payments digitally.

PM SVANidhi Loan Interest Rate

  • In the case of Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), SHGs (self-help groups), and cooperative banks, the applicable interest rate is as per the rates at which the institution is offering similar loans.

  • In the case of Non-Banking Financial Company-Micro Finance Institution (NBFC-MFIs) and Non-Banking Financial Companies (NBFCs), the rate of interest is as per the RBI guidelines for the respective lender category.

All street vendors who have been in the business in urban areas since March 24, 2020, or earlier are eligible to avail the benefits of the PM SVANidhi Yojana. These vendors can be identified in any of the following ways:

  • The vendor must possess a vending certificate/identity card issued by the concerned Urban Local Body (ULB).

  • In case the vendor does not have a certificate or an identity card, they must have been identified in any of the surveys conducted by the concerned ULB. In such cases, the ULB is required to issue a provisional certificate to the vendor immediately so that they can avail the benefit of the scheme. The ULB is supposed to issue a permanent certificate within a month of issuance of the provisional certificate.

  • Street vendors who started vending after the survey was conducted by the ULB can obtain a Letter of Recommendation (LoR) from the ULB or the concerned Town Vending Committee (TVC) to avail the benefit of the PM SVANidhi scheme.

The benefits of the PM SVANidhi Scheme can be availed by vendors in all states and UTs in the country that have notified rules and schemes under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Vendors in Meghalaya, which has its own State Street Vendors Act, can also participate in the scheme.

PM SVANidhi Login Process

One can only initiate the PM SVANidhi login process if they have applied for the benefits of the PM SVANidhi scheme in the capacity of either a lender or a beneficiary. You can log in to the official PM SVANidhi website using your credentials. Once you’re logged in, you can check the status of your loan application and the various options available to you. You can easily log in to the PM SVANidhi website by following the steps given below:

  • Step 1: Visit the official PM SVANidhi website and click on “Login”.

  • Step 2: Enter your username and password in the designated space. An OTP will be sent to your registered mobile number.

  • Step 3: Now, enter the OTP received in the designated space and click on “Submit”. You have successfully logged into your account on the PM SVANidhi website.

Pre-Application Steps of the PM SVANidhi Scheme

Vendors are advised to follow the below-mentioned pre-application steps before they apply for a loan under the PM SVANidhi Scheme:

  • The vendor must carefully evaluate their business expenses and understand their loan requirements.

  • The vendor must make sure that their mobile number is linked to their Aadhaar card as the loan application involves an OTP verification through the Aadhaar-linked mobile number.

  • The vendor must check their eligibility to avail the benefits of the scheme. She/he must also make sure that they possess all the required documents (certificate/identity card/LoR) required to prove eligibility.

How to Apply for a Loan Under PM SVANidhi Scheme?

A vendor can easily apply for a working capital loan under the PM SVANidhi Scheme by following the steps given below:

  • Step 1: Visit the official PM SVANidhi website at https://pmsvanidhi.mohua.gov.in/.

  • Step 2: Click on “Apply Loan 10K” on the home page of the website.

  • Step 3: Now enter your mobile number and check the captcha box before clicking on “Request OTP”.

  • Step 4: Enter the OTP received on your mobile phone on the next page and click on “Verify OTP”.

  • Step 5: Now, select the ‘Vendor’ category. Category-A vendors will have to provide their SRN (Survey Reference Number) and are required to upload the vending certificate/identity proof. Category-C and Category-D vendors are required to upload their LoR (Letter of Recommendation).

  • Step 6: Once you have uploaded the required documents, you need to enter your Aadhaar number and verify the same by entering the OTP received on your Aadhaar-linked mobile number and click on “Submit”.

  • Step 7: Now, fill out the loan application form on the next page. You will be required to enter your details such as your name, address, vending activity, etc.

  • Step 8: After you have filled the form, tick the checkbox “I agree to PM SVANidhi Declaration and Authorisation” and click on “Submit”. Your application has now been submitted and you will be able to see an application number which you need to note down for future reference.

How to Apply for Letter of Recommendation (LoR) by Street Vendors Under PM SVANidhi?

Street vendors who have not been identified in the survey conducted by the ULB (Urban Local Body) can apply for a letter of recommendation online through the PM SVANidhi website to avail the benefit of the scheme by following the below-mentioned steps:

  • Step 1: Visit the official PM SVANidhi website and click on “Apply for LoR”.

  • Step 2: Enter your Aadhaar registered mobile number and click on “Request OTP”. An OTP will be sent to your mobile number.

  • Step 3: Now, enter the OTP received in the designated space and click on “Verify”.

  • Step 4: The LoR application will open on your screen. Fill in the details in the form and upload the required documents. Any of the following documents can be uploaded to obtain the LoR:

    • Proof of any loan taken in the past from a financial institution (bank/NBFC) for the purpose of vending.

    • Proof of having availed one-time assistance from the state/UT. Certain states/UTs were providing one-time assistance to vendors during the lockdown.

    • Membership details of any of the vendor associations.

    • Any other document that certifies that they are a legitimate street vendor.

  • Step 5: Once you have uploaded the required documents, click on “Submit”. An LoR application number will be generated. Save this application number for future reference.

How to Check Your PM SVANidhi Survey Status?

You can follow the below-mentioned steps to check your PM SVANidhi survey status:

  • Step 1: Visit the official PM SVANidhi website.

  • Step 2: Click on “Street Vendor Survey Search”.

  • Step 3: On the next page, fill in some basic details including your state, ULB Name, Vendor ID card number, Certificate of Vending No., Name of Street Vendor, Father’s Name/Spouse Name, and Mobile Number.

  • Step 4: Once you have filled in all the required details, click on “Search” to check your survey status.

Impact of the PM SVANidhi Scheme

The PM SVANidhi scheme was launched with the vision of supporting a population whose businesses were at risk due to widespread restrictions during the lockdown. The scheme has had a significant positive impact on street vending businesses.

  • Approximately 48.7 lakh loan applications have been received under the scheme so far. Of these, about 35.04 lakh loans have been sanctioned, of which, more than 32.32 lakh loans have been successfully disbursed.

  • A total loan amount of ₹3,812 Crores has been sanctioned, of which, ₹3,445 Crores has been successfully disbursed.

  • A total cashback of over ₹11.5 Crores has been disbursed and a total interest subsidy of ₹51.78 Crores has been paid to the beneficiaries.

Top 5 Performing States of the PM SVANidhi Scheme

The top 5 states that have benefitted the most by the PM SVANidhi scheme are Madhya Pradesh, Telangana, Uttar Pradesh, Andhra Pradesh, and Gujarat. The following table shows the number of eligible applicants and the total number of loans sanctioned in each of these states:

State

Number of Eligible Applicants

Number of Loans Sanctioned

Uttar Pradesh

9,80,765

8,73,541

Madhya Pradesh

7,41,832

5,21,094

Telangana

5,36,536

4,02,125

Gujrat

3,69,820

2,18,699

Andhra Pradesh

2,81,976

1,98,514

Digital Transactions by Street Vendors Under PM SVANidhi Yojana

To promote digital transactions, the government offers incentives in the form of cashbacks to vendors who have availed a loan under the PM SVANidhi Scheme. Every transaction of ₹25 or above, if processed digitally, is eligible for a cashback. A vendor can earn a cashback of up to ₹100 every month as per the following table:

Number of Transactions

Cashback Received

First 50 eligible transactions

₹50

Next 50 eligible transactions

₹25

Next 100 eligible transactions

₹25

 

Conclusion

The pandemic adversely impacted the livelihoods of street vendors who already work with a small capital base and might have burnt through it during the lockdown. Hence, there was a need to provide credit to fund the working capital needs of these folks so that they may resume their livelihood. To that extent, the PM SVANidhi scheme has been a boon with over 35 lakh street vendors claiming benefits across India so far. 

FAQs on PM SVANidhi Scheme

✔️What is the full form of PM SVANidhi?

PM SVANidhi stands for PM Street Vendor's AtmaNirbhar Nidhi.

✔️Which lending institutions provide credit under the PM SVANidhi scheme?

The following categories of financial institutions offer credit to street vendors under the PM SVANidhi scheme:

  • Scheduled Commercial Banks

  • Micro-Finance Institutions

  • Regional Rural Banks

  • SHG Banks

  • Cooperative Banks

  • Small Finance Banks

  • Non-Banking Financial Companies

✔️Is it necessary to link mobile number with Aadhaar to avail the benefit of PM SVANidhi loan?

Yes, it is necessary to link your mobile number with your Aadhaar Card to avail a loan under the PM SVANidhi Scheme as the loan application process involves OTP-based Aadhaar verification.

✔️Do I need to provide any collateral to avail the PM SVANidhi loan?

The loans provided under the PM SVANidhi Scheme are unsecured in nature. Therefore, you need not pledge any collateral to avail a PM SVANidhi loan.

Latest PM Svanidhi News

In Gujarat, 2.35 Lakh street vendors benefitted from PM SVANidhi Yojana: Vinod Moradiya

According to Vinod Moradiya, Minister of State for Urban Development and Housing, over 2.35 Lakh street vendors in Gujarat have profited from the PM SVANidhi Yojana since June 2020, and 67,000 of them have paid back the loans.

 

The minister stated that Gujarat ranked fourth in the program's execution while speaking at the SVANidhi Mahotsav on Saturday at the Mahatma Mandir in Gandhinagar.

 

Chief Minister Bhupendra Patel stated that street vendors in Gujarat have received a total of Rs. 263 Crores under PM SVANidhi scheme.

- Aug 05, 2022

‘SVANidhi Mahotsav’ on July 28

On July 28, the Municipal Corporation of Amritsar is preparing to organize "SVANidhi Mahotsav," a cultural event to recognize the achievement of the PM SVANidhi Program and the recipient street vendors and their households, as instructed by the Ministry of Housing and Urban Affairs.

 

Jaswinder Singh, Incharge of Street Vending Zones of MC stated that the city is one of the 75 locations around the country to celebrate SVANidhi Mahotsav in order to acknowledge the accomplishments of the beneficiary street vendors and their financial considerations. The celebration will honour these nano-entrepreneurs' journeys underneath the PM SVANidhi plan for exhibiting lending restraint, virtual habits and showcasing their shrewd industry experience in an effort to commemorate India's 75th anniversary of independence.

- Jul 25, 2022

‘PM SVANidhi’: J&K, Ladakh Street Vendors among Top Loan Beneficiaries

The PM SVANidhi initiative was started by the Ministry of Housing & Urban Affairs to strengthen street vendors by providing them with loans for their overall growth and economic improvement.

 

Jammu & Kashmir and Ladakh street vendors are among the top beneficiaries of this initiative. Among numerous states and UTs, Ladakh has claimed a success rate of more than 94%, while J&K's success percentage is also on the upper side.

 

The RTI survey findings also showed that women street vendors had a better success rate than men.

 

According to the results, 90.72% of the female applicants from UP were approved for both first and second loans. Ladakh had the highest success rate for female street sellers at 83.33%, while Meghalaya, HP, J&K, Telangana, Kerala, the Andaman and Nicobar Islands, and Mizoram had success rates of between 70 and 78%. Punjab had the lowest success percentage for female candidates i.e., 34.14%, followed by West Bengal (37.42%), Bihar (42.84%), Tamil Nadu (43.74%), and Haryana (45.03%).

- Jul 15, 2022

PM SVANidhi scheme to continue till December 2024

 The Central government announced on April 27th, 2022, (Wednesday) to extend the services and benefits of PM SVANidhi Yojna, also known as Street Vendor's AtmaNirbhar Nidhi till December 2024.

 

The scheme aims to offer zero-collateral, low-interest loans to street vendors to grow and expand their businesses, making them self-reliant to sustain their families. With a two-year extension of the scheme, the country is expected to witness a significant growth in the informal economy as well.

 

The Cabinet Committee of Economic Affairs governs the PM SVANidhi Yojnas under the direct guidance of the Honourable Prime Minister Shri Narendra Modi. The PM has also increased the budget of the PM SVANidhi Yojna loans to upto Rs. 8,100 crores.

- May 05, 2022

SVANidhi se Samriddhi’ covers 63 lakhs of street vendors in two phases, providing socio-economic security

 The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) was an initiative launched in the aftermath of Covid 19, to assist the urban street vendors to get back on their feet. The program was successful nationwide and has supported lakhs of beneficiaries. In light of this, the ‘SVANidhi se Samriddhi’ scheme has been launched 126 additional cities across 14 states and Union Territories.

 

The PM SVANidhi had already covered a large number of urban street vendors by offering them up to Rs. 10,000 loan for a year with an interest subsidy of 7% per annum over it. SVANidhi se Samriddhi, launched in Jan 2021, became an extension of the original program, which covered approximately 125 cities in its first phase. Reports claim that over 22.5 Lakh eligible beneficiaries have already been accorded loans as part of the directives of this scheme. This also includes insurance benefits to approx 168.7 Lakh people under the various sub-schemes such as the Pradhan Mantri Shram Yogi Maandhan Yojana, Pradhan Mantri Jeevan Jyoti Yojana, and the Pradhan Mantri Suraksha Bima Yojana.

 

The new phase, phase 2, is expected to cover another 28 Lakh street vendors, as cited by the Ministry of Housing and Urban Affairs (MoHUA). The ministry also said that the scheme is not just intended for the financial relief of urban street vendors but also for their overall socio-economic development.

- Apr 21, 2022