PM SVANidhi Scheme

Table of Contents

Introduction

PM SVANIDHI Scheme: How often do we hear a scream from the streets urging us to buy a wide range of products that begin with vegetables and food items and continue until innumerable other items like cotton pillows, doormats, cutlery, or cotton candy? I’m sure there are plenty.

Living in India isn’t without its own appeals, for instance, many of us have one of the most beautiful memories of our childhood. On returning home from school or playing in the scorching hot afternoons, we would stop and buy ice creams, the kulfis, or those frozen chunks of flavored ice from the vendor in an intersection of the neighborhood. Oh! the everyday pleasures of life! Whatever place we reside in the United States this one thing will never be out of reach.

It was everywhere: streets railway stations, trains buses, bus stops markets, tourist destinations, markets, and the list could go on.

Ironically, what has given us such precious memories is often not noticed. Who sold these items? How many took the job as a profession and boosted the economy that was not formally incorporated into the nation? What are they doing today?

In 2020, when the first occurrence of this type became an utter disaster within one month, and the entire world was plagued by a anxiety about the worst and entered lockdown. Even now, following more than one whole year, we’re still in a the middle of a partial lockdown. The streets are shut, and India is still in lockdown. But what happens to those street vendors and sellers who’s lives were impacted by those streets? What are they doing to survive this “halt” in life?

PM SVANidhi Scheme
PM SVANidhi Scheme

Something that cannot be undervalued or questioned is the role of those who perform the task of bringing our basic necessities all the way at our door in the least expensive way to reach the ultimate objective of the disbanded Make in India Campaign.

The time is here when the overlooked ones are noticed and considered. In June of 2020 amid the dreadful epidemic that is Novel Coronavirus, the Ministry of Housing and Urban Affairs has announced the official launch of the eagerly-awaited and necessary PM Street Vendor’s AtmaNirbhar or what we call it in the common sense PM SVANidhi..

The principal purpose behind this program is to offer credit for working capital to street vendors across the nation, allowing them to get loans for a year, with no collateral, and with low-interest rates, to help them restart their businesses and aid in these desperate times of crisis.

The features in PM SVANidhi Scheme

  • It is the first time it’s an Central Sector Scheme, meaning they are financed directly through central ministries.
  • The scheme will be put into effect through March 2022.
  • Urban vendors along with those operating in the semi-urban and rural areas up to the 24th of March. 2020 are qualified to apply for loans.
  • In the beginning, an initial working capital of Rs. 10,000 will be offered.
  • In the event of a timely or late repayment in which case, the seller is entitled to an interest rate of 7 percent. Additionally, these sellers will also receive more loan amounts during the prior transactions.
  • To encourage Make in India and Digital Transactions To promote Make in India and Digital Transactions, vendors must receive monthly cash back rewards. The cashback is ranging between 50 to Rs. 50 to Rs . 100.
  • The loans are totally non-collateralized.

The Objectives for PM SVANidhi Scheme

To fully unleash the potential of these loans These loans are simple and have beneficial and profitable goals that can be easily understood by the general public and are easy to understand. The possibilities for these loan are enormous that they are able to not just assist those in need , but also ensure the future of these loans and make the application of technology.

  • working capital loanthe primary goal behind this program is to offer the benefit of a cash loan for working capital of 10,000 rupees. 10,000 at reduced rate of interest for any and everyone who is eligible.
  • Digital Transactions are recognized: this creates an awareness, aids in maintaining security protocols during times of an outbreak of viruses, ensures that everyone is on the same platform, and simultaneously rewards sellers with cashback that aids them financially, and also encourages the most deeply grounded citizens of the country to make the first step toward Digitalization.
  • encourage regular loan repayments: the lives of the daily gambler aren’t easy. Taking out loans may ease their circumstances, but the process of repaying the same loans can be a nightmare for their lives. Incentivizing timely repayment of loans helps them to be more moral and also making the process simpler, more beneficial, and less costly.

Liste of Lending Institutions

To reach out to the masses The banks have been selected carefully and precisely. Here’s a complete list of the lending institutions who have partnered with the scheme:

  1. Scheduled Commercial Banks
  2. Small Finance Banks (SFBs)
  3. Regional Rural Banks (RRBs)
  4. Cooperative Banks
  5. Self-help Group Banks (SHG)
  6. Micro Finance Institutions (MFIs)
  7. Non-Banking Financial Companies ( NBFCs)

Eligibility Conditions in PM SVANidhi Scheme

The loan is offered for street sellers who are operating prior to 24th March 2020 Here’s the listing of criteria to identify those who qualify:

  • Only street vendors are recognized to be a legitimate vendor by ULBs as well as Urban Local Bodies and/or the vendors who have an official certificate of Vending as well as the ULB ID card issued by the ULB.
  • Vendors who were identified in the survey but don’t have an Identity or Certificate will be issued an interim Certificate of Vending. In accordance with the request of the Government that these vendors be issued permanent identity cards by the ULBs immediately.
  • Street vendors who do not have the identification above can be eligible if they have been issued an official A Letter of Recommendation (LoR) issued by either ULB or the ULB as well as TVC (Town Vending Committee)
  • The vendors who are located and operating within the peri-urban and rural areas may also be qualified by receiving the same recommendation letter from ULB or TVC
  • ULB and TVC Verified vendors who had to leave their region because of COVID-19 (prior to or during) are eligible for the loan when they have returned and restart their business.

Documents required by the ULBs to generate LoR

For those who are who have been completely omitted from surveys or who are from the nearby Rural Areas, here’s the list of documents required to be submitted to receive LoR by The ULB along with TVC:

  • ULB application form, along with information about the candidate
  • Information about the membership of these individuals who belong to any of the following:
    • National Association of Street Vendors or India (NASVI)
    • National Hawkers Federation (NHF)
    • Self-Employed Women’s Association (SEWA)
  • Any documents which prove that the individual’s selling career
  • Local inquiries reported through TVC or ULB that involve community-based organizations as well as self-help groups (SHGs)

The ULBs have to confirm the applicants within 15 days after the submission of the application by the applicant.

Rate of Interest

Lending InstitutionThe Rate of Interest
Regular Rural Banks (RRBs) Scheduled Commercial Banks (RRBs)Small Financial Banks (SFBs)Co-operative BanksSelf-Help Group Banks (SHG)According to their current rates of interest
Non-Banking Financial Companies (NBFCNon-Banking Financial Microfinance Institutions) (NBFC-MFI)The rates of interest are as per the directives issued from the RBI for the respective categories of lender
Micro Finance Institutions (Non-NBFC)Rate of interest is the same as that imposed by RBI for MFIs that are NBFCs

Interest Subsidy

Each financial year is split in quarters, and each quarter closes at the end of June 30 and September 30, December 31, or March 31. In these days, the lenders have to file claims for the interest subsidies . All participants who are able to avail the loan under the SVANidhi Scheme are eligible for the interest subsidy of 7% that will then be transfered directly into their bank account. There are some aspects one needs to be aware of:

  • In the event of a late repayment the loan will be transferred to the account of the borrower in one lump sum.
  • The subsidy is available until 31st March 2022. The subsidy will be available on the initial and later loan increases until the stated date.
  • The loan will be granted to Standard (non-NPA) account of borrowers , and only during the months of the respective quarters when the account is Standard.

Credit Guarantee

The scheme does not only think about the vendors , but as well about lenders, by offering credit risk mitigation to lenders for all loans that are sanctioned, which is managed through Credit Guarantee Fund Trust for Micro and Small Enterprises ( CGTMSE). The scheme will operate in a portfolio-based manner, where the frequency of the lending institutions that file claims will be every quarter. Here are some more details about the portfolio:

  • Up to 5% of the loss default: 100 percent
  • For anything beyond 5% and up to 15% of second loss 75 percent of the default portfolio
  • The maximum amount of 15% from the portfolio will be offered as a guarantee of coverage.

Promoting Digital Transactions

With the assistance of cashback facilities This scheme is meant to help promote digital transactions, which will bring awareness to the population and provide benefits to users at the same time. Another major benefit for vendors making use of digital transactions an option for payment in addition to cashback, and keeping their customers safe during an outbreak is the building of credit scores every time you use.

This program is designed for people who are not conscious of the advantages that credit scores bring. When they eventually take loans, they find it to be costly. This approach not only teaches the borrower about the system but also creates one when they utilize it.

Today the world, everybody has an iPhone and is connected to the internet. As a result, it is more simple to implement and spread the idea. Here’s a list of most frequently used online payment aggregators as well as lending institutions:

  • NPCI (BHIM)
  • PayTM
  • GooglePay
  • AmazonPay
  • PhonePe
  • BharatPe

If we think of these aggregators can be very lucrative. However, aside from that, the cashback scheme, this program also offers that is based on the following rules:

  • Any payment that is eligible must be above and over the amount of Rs. 25
  • If you complete 50 digital transactions during the month your cashback value will increase to the equivalent of Rs. 50
  • When you make the subsequent 50 transactions within the month (i.e. 100 transactions) The cashback will amount to 75 rupees. 75
  • If you make the next 100 transactions within the month (i.e. 200) the cashback amount will be the amount of Rs. 100.

How do I apply to the SVANidhi Scheme

To be able to apply for loans under the SVANidhi Scheme, all qualified street vendors must make contact with a Banking Correspondent, or any agent of MFIs of their area. Common Service Centre (CSC) was established to assist the vendors throughout the application process. The ULBs include lists of all street vendors that have been identified. This personnel will help the identified or registered vendors in line with these lists throughout an application procedure.

There are two ways for applying, one through the mobile app and another through the portal – https://pmsvanidhi.mohua.gov.in/. You can apply for the position directly or through the assistance of the aforementioned aiding organizations. It is crucial for one to verify and confirm the eligibility status prior to stepping foot in any facility to be sure that there are no crowds during the pandemic.

Documents required for application

To make it easier to access the required documents in order to get this loan are kept easy and simple. Here’s a list of the documents you’ll need for the process of applying:

Why should you choose SVANidhi Scheme?

The process of starting a business is less difficult than starting a new one. The current conditions caused by the pandemic has left industries broken and disintegrated. However, at the same there’s a tremendous need for vital materials that is arising in addition.

This creates new opportunities and larger growth spaces. Through the working capital loans offered by the PM SVANidhi Scheme, street vendors are given the flexibility to revive their businesses and thrive in the marketplace. The loans, which are, as we all know, are rewarding, productive, and economical and help the vendors get back to work with a calm and peaceful note.

When we examine the figures we can see that a total of 41.666 applications have been filed, of which 24,05,408 were sanctioned. The total amount paid out was 20.52.432..

Thus, you can rest sure that the program will be in the right direction and, over a time, going to the correct people in the most effective method.

PM SVANidhi Scheme FAQs:

1. Who will be the partner in the technology for the scheme?

SIDBI also known as Small Industries Development Bank of India is the technical partner in this scheme, in fact to implement the scheme.

2. What are the pre-application steps to obtain the loan?

There are three easy application steps before applying for the loan. First it is essential to comprehend the importance and the prerequisites of the loan as well as the application. It is also essential to have your mobile number connected to their Aadhaar card. If it’s not already linked, applicants will need to have it verified prior to applying. Then it is necessary to determine their eligibility according to the guidelines set in the program.

3. What exactly is CSC?

Common Service Centers or CSC is a mission-oriented project within the Digital India Program that caters Pan-India networks to remote regions of the country. It also helps in achieving the mandate of the Government to create a socially, financially and digitally accessible society. In simple terms CSCs are CSCs serve as access points that provide crucial public utility service such as financial, education, health and agricultural services as well as social welfare programs to the citizens even in the most remote areas of the nation.

4. How can those who aren’t comfortable with digital transactions use the functions?

In order to ensure the program helps educate and increase awareness of the many capabilities of digital platforms the scheme will be facilitated by an MFI representative or payment processor will be appointed and will contact the borrower to assist in conducting tests of transactions and will explain the fundamentals for digital transaction. Additionally, each merchant will receive an QR code and an ATM card to facilitate that the transactions are carried out.

5. How long will it take to be approved for the loan?

Following the submission it takes under 30 days to be approved if the documents submitted are valid and authentic. You must submit the application through the mobile application or web portal. They will be able check the progress of their application by using the same.

6. How do you make sure that you’re to the survey list and/or ULB list?

To confirm the eligibility status of vendors, they have to verify the list provided from the ULB or TVC that is accessible via the official web site of Ministry of Housing and Urban Affairs (MoHUA).

7. What is the term of a loan of Rs. 10,000 loan?

The term for the working capital loan is one year.

8. Are there penalties for pre-closing of the loan?

There isn’t a penalty for early repayment , or the pre-closure of the loan. In fact it’s rewarding since it permits the applicants to apply for enhanced WC loans in the coming term.

9. Are there any collaterals on these loans?

These loans are absolutely collateral-free.

10. Which is the largest incentives that are offered?

Maximum amount for reward in terms of cashback is 1200 rupees. 1200 per person for each loan.

11. Do you think e-KYC obligatory when applying for loans under the SVANidhi Scheme?

It is required for all direct loan accounts that are applying to WC loans under the PM SVANidhi Scheme.

PM SVANidhi News

The SVANidhi Samriddhi’ Parade began in more than 126 cities in 14 States and UTs.

The program has been in operation from 4 4 Jan 2021, by Ministry of Housing and Urban Affairs (MoHUA). It covers 125 cities in Phase 1 of the scheme, it has assisted more than 35 million street sellers obtain an entry-level working capital loans that are affordable. The loan sanction has been granted in the context of Pradhan Mantri Suraksha Bhima Yojana, Pradhan Mantri Jeevan Jyoti Yojana and Pradhan Mantri Shiram Yogi Maandhan Yojana and more.

In an effort to help more families, the Phase II was announced to include over the scheme’s sanctions of 20 lakh as well as the number of street sellers to 28 lakh. It is not just about the loans that can be made to street vendors , but as well for the improvement of the economy of the society. The scheme has already passed the 30-lakh mark, and is hoping to increase it in FY 2022-23 by introducing new cities.

New Updates Date19th April 2022

More than 30 Lakhs In loans disbursed under PM’s SVANidhi Scheme

According to government statistics the number of people who are participants in the government’s PM SVANidhi microcredit scheme surpassed the threshold of 30 lakhs. In June of 2020 the scheme was launched to offer no-security loans of that are up to 10000 rupees for an initial period of one year to nano-entrepreneurs. When the loan is repaid on time, it grants an amount of 20000 for the first tranche as well as the third tranche can be up to 50000. In the period from March 2022 to March 2022, 33.38 loans were approved involving greater than 3000 crores. A interest subsidy of 7 percent is also offered through this plan.

Uttar Pradesh topped in disbursement number, while financial institutions were among the top lenders. But, the government was hoping to hit the target of 30 lakhs in just 12 months, however the process took nearly two years.

News Last Updated date: 05-04-2022

More than 26 lakh beneficiaries availed of working capital loans under the PM SVANidhi scheme.

The quantity of those who have taken advantage from the loan for working capital offered under the PM SVANidhi Scheme stands at 26,37,266 as of the 25th of November 2021.

Under the Prime Minister’s Street Vendor’s Atma Nirbhar Nidhi policy, the amount of loans that were approved but not yet distributed is 3,21,504.

The Minister of State in the Ministry of Housing and Urban Affairs, Kaushal Kishore, informed Rajya Sabha on Monday that the total number of accounts that have greater than three months gap between loans that have been sanctioned and loans disbursed is 2,462,238.

The main reasons behind this difference are

  • The Lending Institutions & the Urban Local Bodies are not properly coordinated
  • Street Vendors often change their mobile phone numbers frequently.
  • Street Vendors aren’t allowed to go to the branches of banks to complete documentation formalities

The Ministry frequently holds reviews with Lending Institutions and Urban Local Bodies to ease the process and speed up distribution of loans that have been sanctioned.

Last Updated 03-01-2022 03-01-2022

PM SVANidhi PM SVANidhi: Loans granted are growing by 9 percent per year, and the number of applications accepted is up by 11 percent.

On Nov. 28, 2021 26.68 lakh loans worth 2,668.52 crore have been disbursed. 2,668.52 crore were disbursed which is an increase from 24.48 lakh loans amounting to the sum of 2,426.47 million on the 29th of August, 2021 in addition to 20.65 lakh loans worth two hundred and forty-five crores on June 3rd 2021. The program offers working capital loans up to $10,000 to street sellers that include hawkers selling fruit tea, vegetables, footwear local-made food items, books and other items. On November 28, 2021 30 lakh loans worth the amount of Rs 3,037.83 crore were approved as per the data on the website of the scheme. This was a greater than 11% rise over the 26.98 lakh applications for around 2,696.26 crore that were accepted as of August 29th 2021. As of now, 49.45 lakh applications have been accepted.

Although the program had initially set out to offer 30 lakh loans during the first year because of a lockdown and other restrictions in the months of April and May this year, following an earlier Covid wave, the initiative was able to only approve nearly 21 lakh applicants. Sanjay Kumar, Joint Secretary, Ministry of Housing and Urban Affairs was quoted by Financial Express Online that 30 lakh was a lofty number. To date, 60% of the people who have borrowed from the scheme are males as opposed to 41% who are women.

Date of Update: 14-12-2021

Government will provide an amount of Rs.25,000 for street vendors under the PM SVANidhi Scheme

The Modi government plans to extend the most popular credit scheme for street vendors. The addition will become part of the PM Street Vendor Atmanirbhar Nidhi. The second variant of this program will be launched to facilitate liquidity to the market during the festive period.

The Prime Minister SVANidhi had already announced assistance measures earlier in of 2020 in the event that the Covid19 disease struck India. New guidelines have increase the maximum amount of capital loans by a factor of 10,000 from 25,000. The government has also increased the amount of guarantee on loan to 25 percent instead of the currently 15 percent. The scheme will be administered through MoHUA. Ministry of Housing and Urban Affairs (MoHUA) which will also ensure that every borrower will be entitled to an interest-free loan of 7. Though it will have a minimal effect on the economy, the government will see the scheme as an opportunity to boost.

Street vendors operating before April 24, 2020 are eligible for a credit of 10,000 rupees, with one year of duration of repayment. The new initiative is expected to help sellers become legitimate lenders.

Last Updated: 15-11-2021

28% of beneficiaries of the PM Svanidhi scheme in Uttar Pradesh

The Pradhan Mantri Street Vendors Atma Nirbhar Nidhi Scheme was established in June 2020 in order to provide working capital loans to market vendors who live in cities whose business and their daily earnings were affected due to the epidemic. The loan serves as an opportunity to recover post the pandemic to ensure these vendors aren’t deprived of their income.

It was discovered by analyzing data that vendors from UP make up 28% of all beneficiaries. There were 11.63 lakh applicants who 6.93 lakh were granted the loan. The scheme has recently been upgraded, and now after repayment, the recipients can get loans as high as INR 20000 and then 50,000 when the second loan is paid back.

Last Updated Time: 24-09-2021

Over 24 lakh loans have been already been granted through the Prime Minister’s SVANidhi Scheme

The PM SVANidhi Scheme was initiated to offer loans of up to INR 10,000 to market vendors in India that were afflicted by the pandemic Covid-19 and who were suffering from extreme financial difficulties to support their business. The loan is to be paid back in 12 months. It was made available as part of the Atmanirbhar Bharat initiative.

The number of people who applied for loans in the scheme was 20.65 thousands in the month of June, which was equivalent to around INR 2,045 crore however, that number has increased to 24.48 lakhs which is equivalent to the figure of INR 2,426.47 Crores. According to data, the majority of applicants (around 44 percent) were vegetable and fruit sellers.

Last Updated Date:06-09-2021

Parliamentary Panel proposes to convert the PM SVANidhi scheme into cash grants

The Pradhan Mantri Street Vendors Atma Nirbhar Nidhi Scheme was established in the year 2020 in order to help street vendors continue to operate despite losing their income because of the Covid-19 pandemic. The scheme provides working capital loans of as much as INR 10,000 per person to approximately 50 lakh street vendors whose lives were affected by the epidemic. The loans provided under the scheme are accompanied by an interest rate of 7% with a tenure of one year, and are repaid with monthly installments. The Parliament’s Standing Committee on Labour recently suggested that instead of an amount for credit on loans and a cash loan to vendors could be more beneficial.

Last Updated date: 20-08-2021

Labour Ministry Supports Govt’s move to reduce the rate of unemployment In Parliament

Minister. Bhupender Yadav, the new Labour Minister, declared on Monday i.e. the 19th of July 19, that during the quarter that followed in 2020’s second quarter the rate of unemployment in the urban areas of India was around 20.8 percent. The reason behind the rates being so high can be caused by the two-month-long national lockdown that was put in place to stop the spread in the pandemic COVID-19. When he was responding to a question posed during the Lok Sabha, Mr. Yadav said that Periodic Labour Force Survey defines that the only way to obtain the most accurate picture of the current state of employment is to analyze the data from the whole year, which includes rural and urban regions.

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