Imagine operating a roadside shop, fruit cart, or tea stall and then receiving the funding you require to expand your enterprise! The PM SVANidhi Scheme was introduced to empower small traders and street vendors in India by providing them with simple access to loans, digital payments, and opportunities for growth.
What Is The PM SVANidhi Scheme?
The Ministry of Housing and Urban Affairs introduced the PM SVANidhi Scheme, a microlending program for a period of one year. It offers street sellers working capital loans of up to Rs 10,000. The loan has a number of extra benefits and requires no collateral. This program offers assistance to about 50 lakh street sellers in urban and semi-urban areas of India.
The Ministry of Housing & Urban Affairs launched the program on June 1, 2020, during the COVID-19 pandemic, with the goal of giving street sellers financial support at a discounted cost.
It offers working capital loans of up to Rs 15,000, Rs 25,000, and Rs 50,000 without the need for security. The program provides cashback up to Rs 1,600 annually for completing approved digital transactions and a 7% annual interest subsidy on regular loan repayment. Additionally, there are no pre-closure fees associated with loans.
Objective Of SVANidhi
The PM SVANidhi scheme will include benefits for street vendors such as interest subsidy to be transferred through DBT into borrowers account in quarterly installments and cashback on digital transactions.#AatmaNirbharVendor pic.twitter.com/CjK50R8l8d
— Ravi Shankar Prasad (@rsprasad) September 9, 2020
This program’s main goal is to assist street vendors in resuming, maintaining, and growing their enterprises following the COVID-19 pandemic’s disruptions. It seeks to economically strengthen unofficial suppliers by integrating them into the official credit system. The program increases creditworthiness, encourages digital usage, and cultivates financial discipline.
Eligibility Required For The PM SVANidhi Yojana
It is important to verify the following eligibility requirements before choosing to register online for the PM SVANidhi Yojana:
This program is available to vendors who have a valid identity card issued by the Urban Local Bodies (ULB) or a Certificate of Vending.
If someone intends to apply for a street vendor loan but is unable to provide a Certificate of Vending, he may want to obtain a Letter of Recommendation (LoR) from the local government.
Additionally, by providing the same letter, vendors who live and operate in peri-urban or rural locations can also meet the eligibility requirements.
Under SVANidhi, ULB-verified suppliers who have departed their operational region as a result of the pandemic are likewise qualified.
Before granting them a certificate, the Town Vending Committees (TVC) surveyed them in accordance with the Street Vendors Act of 2014. To achieve this, sellers who were recognized by the TVC but did not acquire a certificate are given a Provisional Certificate of Vending. These people may also be eligible for the loan program for street sellers.
PM SVANidhi Loan Application Process
Beneficiaries may wish to think about taking the following pre-application actions before submitting an online application for the street vendors’ loan program:
- Recognizing the requirements for applying for a loan as a PM street seller.
- Confirm that the Aadhaar and registered mobile number are connected.
- Verifying eligibility in accordance with scheme regulations.
Instructions For PM SVANidhi Yojana Online Registration
The following are the primary procedures for hassle-free online registration for PM SVANidhi Yojana:
Step 1: Go to PM SVANidhi’s official website and select the “Apply for a loan” link.
Step 2: Enter the captcha code and your mobile number.
Step 3: Kindly input your cellphone number’s one-time password (OTP), which was issued to it.
Step 4: Choose your category and complete the necessary information.
Step 5: Lastly, press “Submit.”
The loan is available to street vendors who have an Urban Local Body (ULB)-issued Certificate of Vending or Identity Card. An IT-based platform would be used to generate a Provisional Certificate of Vending for the vendors who were identified in the survey but have not yet received an Identity Card or Certificate of Vending.
Street vendors who were excluded from the ULB-led identification survey or who began selling after the survey was finished and who received a Letter of Recommendation (LoR) from the ULB/Town Vending Committee (TVC) to that effect are also eligible. Additionally, eligible vendors from nearby development, peri-urban, and rural regions who operate within the boundaries of the ULBs and have received a Letter of Recommendation (LoR) from the ULB/TVC to that effect.
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