PM Svanidhi Loan Schemes 2023: The PM Svanidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) scheme is a government initiative launched by the Government of India in June 2020. Under the PM Svanidhi scheme, street vendors can avail of collateral-free working capital loans of up to Rs. 10,000 – 50,000 to resume their businesses. The loans are provided by banks and microfinance institutions and can be repaid in monthly installments within a period of one year.
The scheme also provides incentives for timely repayment of loans, wherein vendors can avail an interest subsidy of 7% per annum. Additionally, digital transactions made by vendors are incentivized through cashback rewards.
Read Also: Pradhan Mantri MUDRA Yojana
PM Svanidhi Loan Schemes Overview
|Name of Post||PM Svanidhi Loan Schemes|
|Scheme Name||PM Svanidhi Schemes|
|initiated by||Govt of India|
All Details of PM Svanidhi loan scheme 2023
Eligibility: The scheme is available to street vendors, including hawkers, vendors operating in public spaces, and mobile vendors, who were in operation on or before March 24, 2020. Street vendors from both urban and rural areas are eligible to apply.
Loan Amount: The eligible street vendors can avail of a working capital loan of up to Rs. 10,000. This loan can be used for various purposes, including purchasing stock, equipment, raw materials, or meeting other business requirements.
Interest Rate: The interest rate for the loan is determined by the lending institutions, but the government provides an interest subsidy of 7% per annum. This subsidy is credited to the vendor’s account on a quarterly basis.
Tenure and Repayment: The loan has a tenure of one year, and repayment is typically done in monthly installments. However, vendors have the option to repay the loan early without any prepayment penalty.
Application Process: Vendors can apply for the loan through the PM Svanidhi online portal (https://pmsvanidhi.mohua.gov.in/). The portal provides a user-friendly interface for vendors to register, fill in the required information, and upload necessary documents.
Required Documents: The documents generally required for the loan application include proof of identity, proof of vending at the specified location, and bank account details. Additional documents may be requested by the lending institution.
Benefits and Incentives: The PM Svanidhi scheme aims to provide multiple benefits to street vendors. These include access to affordable credit, promotion of digital transactions, increased social security coverage, and training and capacity-building opportunities.
Multiple Loan Cycle: After successful repayment of the first loan, street vendors are eligible for subsequent loan cycles with an increased loan amount. The amount for the subsequent loan cycles can be higher than the initial loan, based on the vendor’s credit history and repayment behavior.
Digital Transactions and Cashback: The scheme incentivizes digital transactions by street vendors. Vendors are encouraged to adopt digital payment methods such as UPI (Unified Payments Interface) and BHIM (Bharat Interface for Money). They can earn a monthly cashback of Rs. 100 if they conduct a prescribed number of digital transactions.
Street Vendor Certification: The PM Svanidhi scheme encourages street vendors to obtain a certificate of vending as part of their formalization process. The certificate serves as proof of their legitimacy as vendors and can be obtained from the urban local bodies (ULBs) or town vending committees (TVCs) established under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
Grievance Redressal Mechanism: The scheme ensures a grievance redressal mechanism for street vendors. They can raise complaints or concerns related to the loan process, disbursal, or any other issues through the PM Svanidhi portal or helpline numbers provided by the government.
What is the PM Svanidhi scheme?
The PM Svanidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) scheme is a government initiative launched to provide financial support to street vendors
Who is eligible for the PM Svanidhi scheme?
Street vendors, including hawkers, vendors operating in public spaces, and mobile vendors, and all type of vendor.
How much loan can a street vendor avail of under the PM Svanidhi scheme?
Street vendors can avail of a working capital loan of up to Rs. 10k to 50k under the PM Svanidhi scheme. The loan amount may vary depending on the vendor’s credit history and repayment behavior in subsequent loan cycles.