The government launched the PM Street Vendor's AtmaNirbhar Nidhi Scheme to offer loans to street vendors. The main objective of the scheme is to provide an economic boost to the street vendors by offering them working capital loans, so that they start their businesses again and bring it back to normalcy. This scheme was launched on 1st June 2020. Through this scheme, the vendors can apply for a loan of up to Rs 10,000 for a year. In addition, there is no need to pledge any collateral for it. This scheme will supposedly help over 50 lakh street vendors across the nation.
The PM SVANidhi scheme is also beneficial to vendors as it helps them avail subsidies along with an increased loan limit. The interest subsidy will be valid till 31st March 2022. Street vendors are encouraged to carry out digital transactions and they can get a monthly cashback of Rs. 100. All street vendors who worked in urban areas on or before March 24, 2020, can avail the scheme. The loan can be repaid in the tenure ranging up to 12 months.
The scheme will help street vendors revive their businesses and make way for new opportunities to this sector to move up the economic ladder.
The Urban Local Bodies (ULB) / Town Vending Committees (TVC) will determine the beneficiaries eligible under the scheme. The eligible vendors will be identified as per the following criteria:
The below mentioned steps will ensure you are ready to start the application process on the portal.
i) Vendor has received One Time assistance during the pandemic lockdown
ii)Vendor must be a member of any vending/ Hawkers association
Visit the official website at http://pmsvanidhi.mohua.gov.in/
Next you need to download the PM SVANidhi Scheme Loan Application Form.
Select the vendor category that you are eligible for.
Fill the Loan application form (LAF). It is a must to have your Aadhaar number linked to your mobile number.
Submit the form after filling the necessary details.
The pandemic crisis has adversely impacted the livelihoods of street vendors that work with a small capital base and might have used the same during the lockdown. Hence, there is a need to provide credit for working capital to street vendors to resume their business. You can apply for collateral-free Business Loans at Finserv MARKETS. You can avail a Business Loan of up to Rs. 30 Lakhs, with a 100% online process. The approval is instant; it takes just 3 minutes and funds will reach you in just 24 hours. The repayment tenure is very flexible and ranges between 1-5 years. In addition, there are no hidden charges at all. You can also apply for a business loan online with the Finserv MARKETS App and get pre-approved offers on business loan.
The following are the type of financial institutions that offer credit for the scheme. They are as follows:
● Scheduled Commercial Banks
● Micro-Finance Institutions
● Regional Rural Banks
● SHG Banks
● Cooperative Banks
● Small Finance Banks
Non-Banking Financial Companies
Street vendors/ hawkers in the urban areas and the vendors of the surrounding peri-urban and rural areas as on or before March 24, 2020, are the target beneficiary of the scheme.
The following are the KYC documents required:
● Aadhaar Card
● Voter’s Identity Card
● Driving Licence
● MNREGA C
● PAN Card
Yes, if the vendor was able to repay the initial working capital early then he/she is eligible for a higher percentage of loan in the next cycle.
The approval process for a loan will be automated through a Mobile App and Web Portal. You will be able to check the real-time status of your PM Svanidhi scheme application. The whole process may take less than 30 days.