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The PM SVANidhi scheme helps street vendors restart and grow their businesses with easy, collateral-free loans and Read More... attractive incentives. Launched on June 1, 2020, it aims to boost their financial independence. Read less

Details

The PM Street Vendor’s AtmaNirbhar Nidhi, or PM SVANidhi scheme, is a special initiative by the Ministry of Housing and Urban Affairs to support our country's hardworking street vendors. Many vendors faced tough times, especially during and after the COVID-19 pandemic. This scheme is designed to help them get back on their feet and even expand their businesses by providing much-needed financial support.

What is the PM SVANidhi Scheme?

Simply put, PM SVANidhi is a scheme that offers street vendors a chance to get a small, collateral-free loan. This means you don't need to offer any property or valuable item as security to get the loan. It's a central sector scheme, meaning the central government is directly funding and managing it. The goal is to bring street vendors into the formal economy, making it easier for them to access credit and financial services. It also encourages the use of digital payments, which can be very beneficial for business growth.

Who is this scheme for?

This scheme is specifically for street vendors. This includes anyone who sells goods or provides services on the street, like hawkers, 'thelewala' (cart vendors), 'rehriwala' (handcart vendors), and others who operate small vending businesses. Whether you sell fruits, vegetables, snacks, tea, clothes, or offer services like tailoring or shoe repair, if you're a street vendor, this scheme might be for you.

Why is PM SVANidhi important?

Street vendors are a vital part of India's urban economy. They provide essential goods and services right at our doorstep, often at affordable prices. This scheme recognizes their contribution and aims to formalize their work. By providing access to loans, interest subsidies, and encouraging digital transactions, PM SVANidhi helps vendors improve their income, increase their savings, and build a more secure financial future for themselves and their families.

Objective

The PM SVANidhi scheme helps street vendors restart and grow their businesses with easy, collateral-free loans and attractive incentives. Launched on June 1, 2020, it aims to boost their financial independence.

Benefits

₹ 55,000/- pm (and HRA as applicable) for Ph.D. or equivalent (total project cost not exceeding ₹ 30 lakh (excluding HRA and Overhead)

₹ 40,000/- pm (and HRA as applicable) for M.Phil./MTech or equivalent (total project cost not exceeding ₹ 25 lakh (excluding HRA and Overhead)

₹ 31,000/- pm (and HRA as applicable) for M.Sc. or equivalent (total project cost not exceeding ₹ 20 lakh (excluding HRA and Overhead)

The Project Cost consists of Fellowship of Principal Investigator (PI), Consumables, Travel, Contingencies, and Minor Equipment but excluding HRA and overheads.

Sources and references

Guidelines

Who Can Apply?

Street vendors who have a Certificate of Vending or an Identity Card issued by Urban Local Bodies (ULBs).
Vendors identified in a survey but who haven't received their Certificate of Vending or Identity Card yet.
Street vendors missed in the ULB survey or those who started vending after the survey completed, provided they have a Letter of Recommendation (LoR) from the ULB or Town Vending Committee (TVC).
Vendors from nearby rural or peri-urban areas who sell within the city limits and have received a Letter of Recommendation (LoR) from the ULB or TVC.

How to Apply

You can apply for the PM SVANidhi loan through your local Urban Local Body (ULB) or a bank. Typically, the process involves:

Approach your nearest bank branch or apply through your ULB.
Fill out the application form with your details and submit the required documents.
Your application will be verified by the ULB and the lending institution.
If approved, the loan amount will be disbursed to your bank account.

For official details and application forms, you can visit the Ministry of Housing and Urban Affairs website:

Official PM SVANidhi Portal

Documents Needed for Application

The exact documents may vary slightly, but generally, you will need:

For the First Loan:

For Category A & B Vendors: Certificate of Vending and Identity Card.
For Category C & D Vendors: Letter of Recommendation (LoR) from the ULB/TVC.

KYC Documents (in addition to the above):

Aadhaar Card
Voter Identity Card
Driving License
MNREGA Card
PAN Card

For Letter of Recommendation (if applicable):

A copy of your Bank Account Statement or Passbook.
A copy of your Membership Card or any other proof of membership (if you are part of any vendor association).
Any other document that proves you are a street vendor.
A formal request letter to your ULB.

For the Second Loan:

Loan Closure Document (showing timely repayment of the first loan).

Official Sources:

Official PM SVANidhi Portal

FAQ’s

What exactly is the PM SVANidhi scheme?

PM SVANidhi, or the Prime Minister Street Vendor’s AtmaNirbhar Nidhi, is a special micro-credit scheme by the Indian government. It's designed to help street vendors get small, collateral-free loans so they can restart or continue their businesses, especially after facing difficulties like the COVID-19 pandemic.

How can I apply for the PM SVANidhi loan?

You can apply for the PM SVANidhi scheme by visiting your nearest bank branch or contacting your local Urban Local Body (ULB). You might also find options to apply online through the official scheme portal or your state's specific website.

What are the documents needed to apply for PM SVANidhi?

Generally, you'll need a Certificate of Vending or Identity Card issued by your ULB. If you don't have these, a Letter of Recommendation from the ULB might work. You'll also need standard KYC documents like Aadhaar Card, Voter ID, Driving License, MNREGA Card, or PAN Card.

Is there any age limit to get a loan under this scheme?

No, there is no specific age limit mentioned to apply for the PM SVANidhi scheme. If you are a street vendor and meet the other criteria, you can apply.

What is the maximum loan amount I can get through PM SVANidhi?

Under the PM SVANidhi scheme, you can get an initial working capital loan of up to ₹10,000. If you repay this on time, you can become eligible for larger loans of up to ₹20,000 and then up to ₹50,000 in subsequent tranches.

What is the interest rate for the loan provided by PM SVANidhi?

The loan provided under the PM SVANidhi scheme comes with an attractive interest subsidy of 7% per annum. This subsidy is credited quarterly to your bank account.

Do I need to provide any security or collateral for this loan?

No, a key feature of the PM SVANidhi scheme is that the loans are collateral-free. You do not need to pledge any assets to get the loan.

Can I apply for PM SVANidhi if I already have a loan from another government scheme?

Yes, you can still apply for the PM SVANidhi scheme even if you have previously taken a loan under any other government scheme. This scheme is independent.

What is the repayment period for the loans under PM SVANidhi?

The repayment period for the first loan tranche is 12 months. For the second tranche, it's 18 months, and for the third tranche, it's 36 months. Loans are to be repaid in monthly installments.

What happens if I repay my loan early?

If you repay your loan early, there is no prepayment penalty. In fact, timely repayment is key to becoming eligible for subsequent, larger loan tranches.

Are there any charges or fees to apply for this scheme?

No, there are no processing fees or charges for you to apply for the PM SVANidhi scheme.

Can I apply for this scheme more than once?

An individual can apply for the scheme only once. However, you can receive up to three loan tranches ( ₹10,000, ₹20,000, and ₹50,000) based on your repayment history.

What is the benefit of using digital payments with this scheme?

You get a cashback of up to ₹100 per month on digital transactions. This encourages you to adopt digital payments, which can also help improve your business tracking and reach.

What is the purpose of the UPI Linked RuPay Credit Card?

After successfully repaying your second loan tranche, you can be eligible for a UPI-linked RuPay credit card with an initial limit of ₹10,000, extendable up to ₹30,000. This card is valid for 5 years and helps further improve your access to credit.

Can the loan amount from PM SVANidhi be used for any business-related expense?

Yes, the loan amount is intended as working capital, so it can be used for various purposes related to your street vending business, such as buying inventory, raw materials, or equipment.