Online Application for PM SVANidhi Scheme

The PM Street Vendor’s AtmaNirbhar Nidhi Scheme (PM SVANidhi) is an initiative by the Indian government aimed at providing financial assistance to street vendors who were significantly impacted by the COVID-19 pandemic. This scheme is a testament to the government’s efforts to ensure the revival and sustainability of the informal urban economy, which street vendors form an integral part of.

Street vendors, also known as hawkers, thelewala, rehriwala, theliphadwala, etc., are essential in providing affordable goods and services to urban populations. These vendors often operate on small capital bases, making them vulnerable to financial crises like the one triggered by the pandemic. The lockdowns severely affected their livelihoods, leaving many unable to resume work without financial assistance. Recognizing this challenge, the government launched the PM SVANidhi Scheme in June 2020 to provide collateral-free, low-interest loans to street vendors.

This article offers a detailed exploration of the PM SVANidhi Scheme, covering its objectives, eligibility criteria, benefits, and application process.

Objectives of the PM SVANidhi Scheme

The PM SVANidhi Scheme is designed with three primary objectives:

1. Facilitating Working Capital Loans: To provide street vendors with working capital loans of up to ₹10,000 at a subsidized interest rate.
2. Encouraging Timely Repayment: To incentivize borrowers to repay their loans on time.
3. Promoting Digital Transactions: To reward street vendors for adopting digital payment methods.

Eligibility Criteria for the PM SVANidhi Scheme

The scheme is accessible to street vendors who were operating in urban areas on or before March 24, 2020. The eligibility criteria are outlined below:

1. Certified Vendors:
   • Street vendors who possess an Identity Card or Certificate of Vending issued by Urban Local Bodies (ULBs) are eligible.
2. Provisionally Certified Vendors:
   • Vendors identified during the ULB-led survey but have not received the Certificate of Vending or Identity Card can avail of a Provisional Certificate of Vending.
3. Recommended Vendors:
   • Vendors excluded from the survey or who began vending after the survey’s completion are eligible if they hold a Letter of Recommendation (LoR) from the ULB or Town Vending Committee (TVC).
4. Rural and Peri-Urban Vendors:
   • Vendors from rural or peri-urban areas vending within the ULB’s jurisdiction, provided they have an LoR from the ULB or TVC.

Benefits of the PM SVANidhi Scheme

The PM SVANidhi Scheme offers a range of benefits to urban street vendors to support their economic recovery and foster business growth.

1. Working Capital Loans

• Street vendors can avail of a collateral-free working capital loan of up to ₹10,000 with a one-year tenure.
• The loan can be repaid in monthly installments.
• Timely or early repayment makes vendors eligible for an enhanced loan amount in subsequent cycles.
• No prepayment penalty is charged for early loan repayment.

2. Interest Rates

• For loans provided by Scheduled Commercial Banks, Small Finance Banks (SFBs), Regional Rural Banks (RRBs), Cooperative Banks, and SHG Banks, the interest rates align with the respective institution’s prevailing rates.
• For loans offered by NBFCs or NBFC-MFIs, the interest rates adhere to RBI guidelines.
• For non-NBFC MFIs and other lending institutions outside RBI’s purview, interest rates are determined based on RBI norms applicable to NBFC-MFIs.

3. Interest Subsidy

• Borrowers under the PM SVANidhi Scheme are eligible for a 7% interest subsidy.
• The subsidy amount is credited to the vendor’s account quarterly.
• The interest subsidy is valid until March 31, 2022, and applies to both the first and subsequent enhanced loans.

4. Incentives for Digital Transactions

• Vendors are encouraged to adopt digital payment methods through incentives like cashbacks.
• Lending institutions, in partnership with digital payment platforms such as Paytm, Google Pay, Amazon Pay, BHIM, BharatPe, and PhonePe, assist vendors in transitioning to digital transactions.
• Vendors can earn monthly cashback rewards ranging from ₹50 to ₹100 for conducting digital transactions.

How to Apply for a Loan Under the PM SVANidhi Scheme

The PM SVANidhi Scheme provides a streamlined application process to ensure that eligible street vendors can easily access financial support.

1. Approaching the Right Entity

Street vendors must contact a Banking Correspondent (BC) or an agent of a Micro Finance Institution (MFI) in their area. Urban Local Bodies (ULBs) maintain a list of these representatives who assist vendors in completing the application process.

2. Application Process

• Filling the Application Form: The BCs or MFI agents help the vendors fill out the loan application form.
• Document Submission: The completed form, along with necessary documents, is uploaded through a mobile app or respective portals.

3. Required Documents

The following documents are needed to apply for the loan:

1. Identity Proof:
   • Certificate of Vending or Identity Card issued by ULBs.
   • Letter of Recommendation (LoR) from ULB or TVC.
2. KYC Documents (any one of the following):
   • Aadhaar Card.
   • Voter Identity Card.
   • Driving License.
   • MGNREGA Card.
   • PAN Card.

Role of Urban Local Bodies (ULBs) in PM SVANidhi

Urban Local Bodies play a critical role in the effective implementation of the PM SVANidhi Scheme. Their responsibilities include:

1. Identifying Eligible Vendors: Conducting surveys to identify and register eligible street vendors.
2. Issuing Certificates or LoRs: Providing Identity Cards, Certificates of Vending, or LoRs to ensure that vendors meet eligibility requirements.
3. Facilitating Loan Applications: Coordinating with BCs, MFIs, and vendors to ensure seamless application submission.
4. Promoting Awareness: Conducting awareness campaigns to inform vendors about the scheme’s benefits and encourage participation.

Impact of the PM SVANidhi Scheme

Since its launch, the PM SVANidhi Scheme has had a significant impact on street vendors by:

1. Providing Financial Stability: The working capital loans have enabled vendors to resume their businesses without the burden of high-interest rates or collateral requirements.
2. Encouraging Digital Inclusion: The cashback incentives for digital transactions have promoted financial literacy and inclusion among street vendors.
3. Boosting Local Economies: By reviving street vending activities, the scheme has contributed to the economic recovery of urban areas.

Conclusion

The PM SVANidhi Scheme is a commendable initiative aimed at empowering street vendors, who are an indispensable part of the urban informal economy. By providing financial support, encouraging timely repayment, and promoting digital transactions, the scheme ensures that street vendors can rebuild their businesses and thrive in a post-pandemic economy.

The government’s focus on creating an inclusive financial ecosystem underscores the importance of street vendors in sustaining urban economies. Eligible street vendors should take full advantage of this scheme to secure their livelihoods and embrace opportunities for growth. For more information, vendors can visit the official PM SVANidhi portal or contact their local ULB offices.