Prime Minister Vendor’s AtmaNirbhar Nidhi is a scheme launched by the Ministry of Housing and Urban Affairs to empower street vendors and their families. This scheme focuses on collateral-free working capital and affordable loans in tranches starting from Rs 10,000 for a term of one year. It also lays emphasis on the holistic socio-economic development of street vendors and their families.
The government gives incentives to street vendors who adopt digital transactions by offering them cashbacks. Approximately 50 lakh street vendors are expected to benefit from this scheme. A loan amount of Rs. 8,100 crores has been sanctioned for this PM SVANidhi scheme. This loan amount would help the street vendors expand their business, making them”atma nirbhar” or self-reliant.
PM SVANidhi Scheme So Far
PM Street Vendor’s AtmaNirbhar (SVA Nidhi) Scheme was launched in June 2020. The main objective of this scheme was to uplift the street vendors and help them recover their losses due to the covid pandemic.
This scheme has been extended till 2024 December. In a recent report, it was revealed that 30,20,566 first PM SVANidhi loans have been disbursed and 2,99,179 second PM SVANidhi loans have been disbursed to date. The PM SVANidhi loans are in tranches where Rs. 10,000 is given in the first tranche, Rs. 20,000 in the second tranche and Rs. 50,000 in the third tranche. With an 88% repayment rate, Rs. 30.24 lakh crores have been disbursed so far.
The street vendors have completed over 13.5 crore digital transactions, and cashback of Rs. 10 crores have been given. As interest subsidy, Rs. 51 crores have been paid.
Segmentation of PM SVANidhi Scheme
Here is a detailed illustration of the cashback and interest subsidy for a loan of Rs 10,000.
Month
Principal (in ₹)
Interest @24% (in ₹)
EMI (in ₹)
Interest subsidy @7% (in ₹)
Cashback ₹Incentive (in ₹)
Total Benefit (in ₹)
1
746
200
946
58
100
158
2
761
185
946
54
100
154
3
776
170
946
50
100
150
4
791
154
945
46
100
148
5
807
139
946
42
100
142
6
823
122
945
36
100
136
7
840
106
945
32
100
132
8
856
89
945
27
100
127
9
874
72
946
22
100
122
10
891
55
946
17
100
117
11
909
37
946
12
100
112
12
927
19
946
6
100
106
Total
10,001
1,348
11,349
402
1,200
1,602
% w.r.tinterest
30% of interest
88% of interest
Eligibility for PM SVANidhi Scheme
This scheme is available for all the vendors in urban areas as on or before 24th March 2020. These vendors are identified based on the following criteria:
Street vendors with an ID card or certificate of vending issued by Urban Local Bodies (ULBs).
Vendors who have not received their Vending/ID card but have been identified by the survey. In this case, a Provisional Certificate of Vending is given to the street vendor.
In case any street vendor was left out of the ULB’s identification survey or has started after the completion of the survey but has received a Letter of Recommendation by ULB or Town Vending Committee (TVC).
Street vendors who have been issued a Letter of Recommendation falling in the geographical limits of ULB like surrounding rural or peri-urban areas.
Application of loan under PM Street Vendor’s AtmaNirbhar Nidhi scheme
To apply for a loan the street vendor should approach a Banking Correspondent or Agent of Micro Finance Institution in their area. They help street vendors to fill out the application form and upload documents in the PM SVANidhi portal or mobile app. One can also apply for the PM Street Vendor Atma Nirbhar Nidhi scheme online.
KYC documents required:
Certificate of Vending or ID card issued by ULB or letter of recommendation from ULB or TVC.
Any one of the following:
Aadhaar card
PAN card
Voter ID
Driving licence
MNREGA card
To apply for PM Street Vendor Atma Nirbhar Nidhi scheme online:
Visit the official PMSVANidhi website
Click on ‘Apply loan 10K’, which can easily be viewed on the homepage of the website.
Enter the mobile number and the Captcha and click on get OTP.
Enter the OTP received on your mobile and click on verify.
Select the vendor category. It is mentioned there that Category A vendors will have to provide their survey reference number (SRN). They will have to upload their vending certificate/ID card. The Category C and Category D vendors will have to upload their Letter of Recommendation (LoR).
Once the required documents are uploaded, you will be required to enter your Aadhaar number and verify it with the OTP received on the registered mobile number. Click on ‘SUBMIT’.
On the next page will be the loan application form. All the details like name, address, type of vendor etc. need to be filled in this form.
After filling out the form, it needs to be submitted. After the submission, an application number will be given to the applicant for future reference.
Conclusion
The government launched this scheme to help and upraise the street vendors who earn with a very small working capital. More than 35 lakh street vendors have benefitted from the scheme so far.
22 July 2022
4 mins read
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