PM SVANidhi) - Eligibility, And Objectives

The PM Svanidhi scheme or Yojana is available to each street seller/hawker working in city areas during or before 24 March 2020.

Under this scheme, street vendors are eligible to receive collateral-free loans with low-interest charges for one year.

The Ministry of Housing & Urban Affairs launched a scheme PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) to empower Street Vendors by not only extending loans to them but also for their holistic development and economic upliftment.

The scheme intends to facilitate collateral-free working capital loans of up to INR10,000/- of one-year tenure, to approximately 50 lakh street vendors, to help resume their businesses in the urban areas, including surrounding semi-urban/rural areas.

Eligibility Criteria of PM SVANidhi

The Scheme is available to all street vendors (SV) engaged in vending in urban areas on or before March 24, 2020. The eligible vendors will be identified as per the following criteria

  1. Street vendors identified in the survey and in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs)
  2. The Vendors, who have been identified in the survey but have not been issued a Certificate of Vending / Identity Card; Provisional Certificate of Vending would be generated for such vendors through an IT-based Platform by ULBs.
  3. Street Vendors, left out of the ULB-led identification survey or who have started vending after completion of the survey and have been issued a Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC)
  4. The vendors of surrounding development/semi-urban/rural areas vending in the geographical limits of the ULBs have been issued a Letter of Recommendation (LoR) to that effect by the ULB / TVC.

Salient Features of PM SVANidhi

  1. This scheme operates at the central level.
  2. It aims to offer affordable working capital loans to street vendors affected by the COVID-19 pandemic.
  3. The scheme will remain in effect until March 2022.
  4. Vendors can receive an initial working capital of up to ₹ 10,000.
  5. An interest subsidy of 7% is provided to vendors who repay their loans early or on time.
  6. Monthly cash-back incentives are available for digital payments, ranging from ₹ 50 to ₹ 100.
  7. If a vendor repays the first loan on time, they have a higher chance of being eligible for a larger loan.
  8. No collateral security is required for vendors to access the loan.

Objectives of PM SVANidhi of PM SVANidhi

  • The objectives are to provide vendors with affordable working capital loans, enabling them to restart their livelihoods after the nationwide lockdown caused by the pandemic.
  • To encourage timely loan repayments, incentives such as cash-back rewards and higher loan amounts on subsequent requests are offered.
  • The scheme promotes digitalization by rewarding vendors who choose to make loan repayments digitally.
  • Boost to Digital Infrastructure – The objective of the PM SVANidhi Scheme was to stimulate economic activities among street vendors, a group heavily impacted by pandemic restrictions.
  • By promoting greater formalization among street vendors, the Scheme aimed to create social and financial opportunities, enabling upward social and economic mobility for them.

Benefits of The PM SVANidhi Scheme - The intended benefits of the scheme are as follows:

  1. Vendors can get a working capital loan of up to rupees 10000, which can be repaired in monthly installments over the time period of one year.
  2. This scheme promotes digital transactions through cashback in sentences up to a number of Rupees 100 per month.
  3. The vendors can get the facility of escalation of the credit limit on timely/early repayment of loans.
  4. On timely/early repayment of the loan, an internet subsidy at the rate of 7% per annum will be credited to the bank accounts of
  5. Beneficiaries through Direct Benefit Transfer on a quarterly basis. No penalty will be charged on early repayment of the loan.

Conclusion

As we all know, and must understand that the PM SVANidhi scheme extends several benefits to vendors and hawkers in India.

Street vendors play a significant role in making goods and services available for city dwellers at affordable rates, thereby becoming a vital constituent of the urban informal economy.

Pradhan Mantri SVANidhi scheme is the best scheme for small vendors like street vendors, stalls, artisans, and many more. You’ve probably figured out that the PM SVANidhi scheme provides various benefits to Indian vendors, “thelewala,” and hawkers.

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