The ongoing Coronavirus pandemic has severely affected the Indian economy. Of the several entities that have been hit, street vendors have received the biggest blow. The vendors are an inclusive part of the economy and contribute to filling the wide need for food requirements across the country. However, the pandemic has left most street vendors gasping for livelihood, further crippling the economic system.
In a bid to bring relief to street vendors, the central government has introduced the PM Street Vendor’s AtmaNirbhar Nidhi. The scheme was launched by the Ministry of Housing & Urban Affairs as a way to empower street vendors.
How Does the PM SVANidhi Scheme work?
PM SVANidhi Scheme aims to target a total of 50 lakh street vendors. The scheme enables beneficiaries to avail a collateral-free loan of up to ₹10,000 for a tenure of up to one year. Repayments can be made through monthly instalments. If a beneficiary can make the loan repayment before the tenure, then a subsidy of 7% per annum is credited into the bank account every third quarter. Needless to say, there is no penalty levied on prepayment made against the loan.
What is the PM SVANidhi Mobile App?
The ministry has launched the PM SVANidhi mobile app that is increasingly becoming popular among street vendors. The app is built to be user-friendly and offers a great digital interface for lending institutions. It makes the loan application and processing much smoother.
Incentives Offered Through the PM SVANidhi Scheme
The PM SVANidhi scheme brings with it lucrative benefits for street vendors. These include:
- Interest Subsidy – The scheme offers an interest subsidy of 7% per annum. Albeit, this subsidy is only applicable to loan repayments that are made in a timely fashion.
- Cashback Incentives – To encourage vendors to use digital modes of transaction, the scheme also brings with it cash back incentives. On undertaking prescribed digital transactions, beneficiaries can earn up to ₹1,200 per annum.
- Enhanced Eligibility – Timely payments also aid in enhanced eligibility for the next tranche of loans.
- Additional Scheme Links – The PM SVANidhi offers beneficiaries the benefits of additional scheme links. It provides socio-economic profiling, not only to the beneficiaries but also to the family members. The date is used to determine their eligibility for other welfare schemes offered by the central government. They get the best of all the available schemes through the process of linking.
Eligibility Criteria for the PM SVANisdhi Scheme
The PM SVANisdhi scheme can be availed by all street vendors who undertake vending in urban areas on or before March 24, 2020. The eligible vendors must meet the following criteria:
- Have possession of Certificate of Vending or an identity card as issued by the Urban Local Bodies. In this case, vendors who do not possess the Certificate of Vending or who were not issued one at the time of the survey can avail of the Provisional Certificate of Vending. The provisional certificate is issued through an IT-based platform.
- Urban local bodies have been encouraged to issue vendors permanent vending certificates or identification cards within a turn around period of one month.
- Beneficiaries with letters of recommendation from the Urban Local Bodies and Town Vending Committees are also eligible.
Steps to get a PM SVANidhi Scheme Loan
The Ministry has ensured that beneficiaries can avail of the business loan scheme with ease. Street vendors can apply using the PM SVANidhi Scheme or Common Service centre closest to them through the following simple steps:
- Understand and evaluate the loan application requirements set by the ministry.
- Link the mobile number to the Aadhaar card.
- Ensure that all the scheme related criteria are met before finally applying.
The detailed guidelines about the scheme can be found listed on the PM SVANidhi portal. This portal can be accessed and used for reference by beneficiaries, urban bodies, and lenders.
Recent Update in the PM SVANidhi Scheme
In the latest update against the PM SVANidhi scheme, the Modi government has sanctioned 23 lakh loans while disbursing 18.54 lakh loans to the beneficiaries who had applied for the scheme. This update was announced by the Union Minister of State for Finance and Corporate affairs as an answer to a question raised during the Lok Sabha meeting. He released the particulars through a written statement.
The scheme aims to widely facilitate beneficiary street vendors and encourage them to launch e-commerce platforms to further the growth of the business. Visit Finserv MARKETS to stay updated on all the latest updates released on the PM SVANidhi Scheme.