PM SVANidhi Scheme for street vendors | Fusion - WeRIndia

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is intended to provide special microcredit to street vendors.

Eligible street vendors can get a loan up to ₹10,000 for a tenure of one year under this scheme. This working capital loan is collateral-free.

The scheme aims to benefit nearly 50 lakh street vendors and hawkers in urban areas including peri-urban and rural areas.

The Ministry of Housing & Urban Affairs launched PM SVANidhi scheme under AtmaNirbhar Bharat Abhiyan.

The vendors who avail loan under this scheme and repay regularly will have some incentives. They will get interest subsidy of 7 per cent per annum (around ₹400) and cashback up to ₹1,200 per annum if they use digital transactions.

The interest subsidy amount will be directly credited to the bank account of the vendor every quarter.

Timely repayment of the first loan will make the vendors eligible for a higher loan amount.

More than 5 lakh loan applications have been received under the scheme and 1 lakh applications have been sanctioned so far.

Those who want to apply under PM SVANidhi scheme should have to link their mobile number to their Aadhaar card number.

They should understand the loan application requirements and their eligibility status before applying for the loan under this scheme.

Street vendors should have a certificate of Vending or Identity Card issued by Urban Local Bodies. Or they shall have Letter of Recommendation (LoR).

Besides, the Aadhaar card and voter card are mandatory for KYC. Driving licence, PAN card and MNREGA card are other KYC documents.

In addition to scheduled commercial banks, regional rural banks, cooperative banks etc., NBFCs and MFIs will also engage in PM SVANidhi scheme to provide loans to street vendors. Thus, PM SVANidhi scheme aims to help more street vendors and hawkers. The scheme will be implemented till March 2022.

Photo by ravelphotographer (pixabay.com) on Needpix (Free for commercial use / CC0 Public Domain)

Image Reference: https://www.needpix.com/photo/download/1814627/vendor-india-man-seller-market-food-sell-street-selling