PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, has been launched to benefit street vendors. The aim is to mainstream them and improve their lives.
What is the PM SVANidhi scheme?
It’s a micro-credit scheme, launched by the Ministry of Housing and Urban Affairs, in June 2020. Collateral-free loans are given under the scheme, with no hassles regarding strict repayment terms. They plan to cover around 50 lakh vendors. Also, interest subsidy claims under the scheme are paid till March 2028.
How much loan amount can be availed by vendors?
Loans are provided under this scheme in cycles. Three cycles are there under which loans can be given through this system. In the first cycle the loan that can be given is maximum ₹10,000 then ₹20,000 and ₹50,000 in the third cycle. The time for repayment is different for these loans.
What are the benefits of repaying a loan in time?
Timely payment has future benefits. It also helps in availing higher loans in the next round. This and a 7% annual interest subsidy and ₹1200 cash back reward annually for timely repayment of loans.
Is there any pre-payment penalty?
No, there are no pre-closure charges on loans.
What is the scheme’s eligibility criteria?
Any street vendor who is working in urban areas on or up to March 24, 2020, selling items like fruits, vegetables, and ready-to-eat street food, or providing services like barbershops and laundry, becomes eligible. Even the applicants who don’t possess a certificate of vending become eligible and can apply for a provisional certificate after conducting a local inquiry.
What are the steps to get a loan under PM SVANidhi?
PM SVANidhi online application is easy to access the loan. The street vendors can use the web application to file for a loan and check on the application’s status.
What is the whole idea behind this scheme?
This project has been initiated primarily for the financial aid of street vendors. Thus, providing them a special portal through which they could recover their livings post-pandemic. Overall, the country’s GDP will get an added positive contribution.
