Pradhan Mantri Svanidhi Yojana: Prime Minister Narendra Modi has greatly impacted the lives of countless street vendors through the Swanidhi Yojana. Launched by the Prime Minister on June 1, 2020, this scheme has revolutionized the way small traders and street vendors in the country access financial assistance.
The Pradhan Mantri Svanidhi Yojana stands out as a remarkable initiative aimed at uplifting the economic status of street vendors and small traders. Through this scheme, these individuals have been provided with access to loans and financial support, which has proven instrumental in enabling them to expand their businesses, improve their livelihoods, and secure a better future for themselves and their families.
The success of this program is not only a testament to the government’s commitment to the welfare of street vendors but also a reflection of Prime Minister Narendra Modi’s vision for a more inclusive and economically empowered India. By offering financial aid to those who need it the most, Swanidhi Yojana has emerged as a beacon of hope for lakhs of street vendors across the nation.
Pradhan Mantri Svanidhi Yojana
Under the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM-SVANidhi) scheme, more than 46.54 lakh micro working capital loans have been disbursed to street vendors in the three years since its launch on June 1, 2020.
The Pradhan Mantri Svanidhi Yojana is not only advantageous for street vendors but also offers additional benefits, including subsidies and increased loan limits. It’s worth noting that the interest subsidy component of the scheme was initially valid until March 31, 2022.
One notable feature of the scheme is the encouragement of digital transactions among street vendors. Those who adopt digital payment methods can receive a monthly cashback of Rs 100, further incentivizing the shift towards digital financial inclusion.
Furthermore, the scheme is inclusive, encompassing all street vendors operating in urban areas on or before March 24, 2020. This inclusivity ensures that a wide range of vendors can access the benefits of the program, promoting economic empowerment and livelihood improvement.
Additionally, the loan repayment terms are flexible, allowing vendors to repay the loan over a period of up to 12 months, easing the financial burden and enabling a smoother transition toward self-sufficiency.
What is Pradhan Mantri Svanidhi Yojana?
The Pradhan Mantri Svanidhi Yojana, initiated by the Ministry of Housing and Urban Affairs in June 2020, serves as a vital government program aimed at extending financial support to street vendors adversely affected by the COVID-19 pandemic.
Through this scheme, street vendors are eligible to access working capital loans, with a maximum limit of Rs. 10,000. These loans are repayable through monthly installments over a one-year period. Additionally, the scheme offers an extra incentive of Rs. 1,200 per annum to those beneficiaries who successfully repay their loans on time.
The primary objective of this initiative is to establish a safety net for street vendors who have suffered a loss of livelihood due to the pandemic. By offering essential financial assistance, the scheme enables these vendors to reestablish their businesses and income sources. It is estimated that approximately 50 lakh street vendors across the nation stand to benefit from this program.
Main points of Pradhan Mantri Svanidhi Yojana
- Small dealers will be eligible for a loan of Rs 10,000 under the program.
- Its goal is to support independent retailers and street vendors.
- 1.54 lakh candidates have already obtained loans under this program.
- Within a year, the borrowed money may be repaid in installments.
Benefits of Pradhan Mantri Svanidhi Yojana
The primary objective of the PM SVANidhi Scheme is to offer unsecured working capital loans to street vendors, thereby supporting them in launching and expanding their businesses. This scheme seeks to facilitate the following key provisions:
- Working Capital Loans: The scheme provides working capital loans to street vendors, with the initial loan amount set at Rs. 10,000. These loans are extended without the requirement for any collateral or guarantee. This financial support is designed to assist street vendors in initiating and enhancing their business activities.
- Loan Progression: Timely repayment of the initial loan of Rs. 10,000 enables beneficiaries to access a second loan of Rs. 20,000. Additionally, after successful repayment, street vendors become eligible for a loan installment of Rs. 50,000. These subsequent loans allow for business growth and expansion.
- Interest Subsidy: To encourage regular repayment, the scheme incorporates an interest subsidy component. Beneficiaries who repay their loans on time can benefit from an interest subsidy at the rate of 7 percent per annum. This incentive not only reduces the financial burden on street vendors but also motivates them to fulfill their repayment obligations promptly.
- Digital Transactions: The scheme promotes digital transactions by offering cashback incentives of up to Rs. 1,200 per year. This encouragement for digital payments aims to enhance financial inclusion and modernize the payment methods of street vendors, making their businesses more efficient and transparent.
Planning to APPLY for Loan?
Follow 3 STEPs before starting the online Application Process:
1. Understand the loan application requirements
Complete the Loan Application Form (LAF) for the Scheme with the necessary information documents in hand. Before you begin the application process, have all the necessary information on hand.
2. Make sure your mobile number is linked to your Aadhaar
You are advised to ensure that your mobile phone is linked to your Aadhaar number. This linkage is essential for several reasons:
- E-KYC/Aadhaar Validation: Having your mobile number linked to your Aadhaar is crucial for online application processes that require e-KYC (Electronic Know Your Customer) or Aadhaar validation. It streamlines verification procedures, making transactions and applications more convenient.
- Letter of Recommendation: In some cases, you may need a Letter of Recommendation from your Urban Local Body (ULB). Linking your mobile number to Aadhaar can facilitate this process, if required.
- Access to Government Welfare Schemes: Linking your mobile number to Aadhaar ensures that you can avail of future benefits and services provided under various Government welfare schemes. It helps streamline the delivery of these benefits and services directly to you.
The process for updating your mobile number in your Aadhaar details is relatively straightforward, as per information from UIDAI officials. Typically, you only need to fill out a form for this purpose, and there is no additional documentation required. For specific guidance and to find the nearest Aadhaar center for mobile number linking or any other Aadhaar-related services, you can visit the official UIDAI portal.
Ensuring that your mobile number is linked to your Aadhaar is a prudent step that simplifies various online processes and ensures you stay connected with government services and schemes.
3. Check your eligibility status as per scheme Rules ion to be kept ready
You will fall in one of the following 4 categories of Street vendors. Check your status and the documents/ information which you need to keep ready
|Category||Vendor Status||Action required by Vendor|
|A.||Vendor has been covered in the survey of Urban Local Body (ULB) and have been issued Certificate of Vending (CoV) or Identity card (ID Card) by ULB or the Town Vending Committee||
|B.||Vendor has been covered in the survey of Urban Local Body (ULB) and has not been issued Certificate of Vending or Identity card by the ULB or the Town Vending Committee||
|C.||Street vendors, left out of the ULB-led identification survey or who have started vending after completion of the survey.
2 sub categories will be there :
|C1 : Vendor has been issued Letter of Recommendation by ULB/ TVC||
|C2 : Vendor has not been issued LoR||
|D.||Street vendors of surrounding development/ peri-urban / rural areas vending in the geographical limitsvof the ULBs (not covered in Survey)
2 sub categories will be there:
|D1 : Vendor has been issued Letter of Recommendation by ULB/ TVC||
|D2 : Vendor has not been issued LoR||
After completing the aforementioned three stages, you are prepared to begin the application process on the site. You have two options for applying: directly via you, or through a Common Service Center (CSC) in your neighborhood.
Pre-application process of Pradhan Mantri Swanidhi Yojana
To ensure that you are prepared to begin the application process on the site, follow the instructions below:
1. Verify that your name is listed in the vendor survey list and make a note of your survey reference number (SRN).
2. Have an image of your ID card or Change Coefficient (CoV) on hand for uploading throughout the application procedure.
3. When you submit an online application, the system will produce a provisional CoV for you.
4. Always have a letter of recommendation (LoR) on hand and prepared to upload.
5. One of the following needs to be clarified by the seller:
- The seller received one-time assistance during the Corona lockdown.
- The seller must be a member of any Vending/Hawkers Association
Visit the official website http://pmsvanidhi.mohua.gov.in/.
After this, you have to download the PM SVANidhi Scheme loan application form.
Pradhan Mantri Svanidhi Yojana Eligible
The eligibility criteria for the Pradhan Mantri Svanidhi Yojana are designed to target specific groups of street vendors who have been adversely affected by the COVID-19 pandemic. These eligibility criteria are as follows:
- Tenure in Vending Business: Street vendors in urban areas who have been engaged in vending for a minimum of one year as of March 24, 2020, are eligible for the scheme. This criterion ensures that those who have a substantial presence in the vending business are considered.
- Dues Payment by ULB: Street vendors who were required to make payments for vending or had pending dues to the Urban Local Body (ULB) on or before March 24, 2020, and hold a certificate of identity card issued by the ULB, are eligible. This helps target those who were already part of the formal vending system.
- Bank Account and Mobile Phone: Eligible applicants should possess a savings bank account and a mobile phone. This requirement facilitates the disbursement of loans and encourages digital transactions, making the scheme more accessible and efficient.
- Exclusivity of Loan Scheme: Street vendors who are not availing any other loan scheme at the same time are eligible. This ensures that the benefits of the Pradhan Mantri Svanidhi Yojana are targeted specifically toward street vendors facing financial challenges due to the pandemic.
- Impact of COVID-19: The scheme is intended for street vendors who have been directly impacted by the COVID-19 pandemic, resulting in a loss of their livelihood. This criterion ensures that the scheme supports those who have faced economic difficulties due to the pandemic.
It’s important to note that this scheme is exclusively for street vendors and not applicable to individuals with established business establishments. The criteria are designed to provide targeted assistance to street vendors who meet these specific conditions and have faced economic hardships due to the pandemic.
Salient Features of Pradhan Mantri Svanidhi Yojana
- It is a central sector scheme
- It will provide affordable working capital loans to street vendors who are left affected by the novel coronavirus pandemic.
- It will be implemented till March 2022.
- Vendors will be provided with an initial working capital of up to Rs. 10000
- A vendor will get an interest subsidy at 7 per cent at early or timely repayment of loans.
- There is a provision of monthly cash-back incentive on digital payments.
- Monthly cashback in the range of Rs. 50-100.
- A vendor has the high probability to be eligible for a higher loan if he/she repays the first loan on time.
- A vendor does not have to provide any collateral security to access the loan.
- Small Industries Development Bank of India (SIDBI) will be the implementation partner of the Ministry of Housing and Urban Affairs for scheme administration.
- SIDBI will leverage the network of lending Institutions including the SCBs, RRBs, SFBs, Cooperative Banks, NBFCs & MFIs for scheme implementation.
Pradhan Mantri Svanidhi Yojana (FAQ’s)
Q. How much loan is available in Pradhan Mantri Svanidhi Scheme?
up to Rs 10,000 to Rs 50,000
Q. Who are eligible for PM SVANidhiam?
- Street vendors in urban areas who have been in the business of vending for at least one year as on 24th March 2020.
- Street vendors who are required to pay for the vending/payment of dues by the Urban Local Body (ULB) on or before 24 March 2020. A certificate of identity card has been issued.
Q. How to apply for PM SVANidhi Scheme?
Applications under the PM SVANidhi Scheme can be registered on the official website of PM SVANidhi https://pmsvanidhi.mohua.gov.in/. Apart from this, application can also be made by downloading the PM Svanidhi Mobile Application.
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