PM SVANidhi Scheme- Street vendors or small shop owners in the country get a loan without guarantee under the Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) scheme. So far, more than 68 lakh street vendors, fruit-vegetable, laundry, saloon, and paan shop owners have received loans under the scheme. These include both men and women. According to the government dashboard, so far an amount of more than 13,790 crores has been given as loans to eligible people.
What is PM SVANidhi Scheme?
PM SVANidhi Yojana is a government loan support scheme, which has been started to make the street vendors of urban areas self-reliant. Under this, street vendors are initially given a loan of 10,000 without any guarantee, which can be increased to 20,000 and then 50,000 next time if repaid on time. The scheme also provides the benefit of 7% annual interest subsidy and cashback up to Rs 1,200 on digital transactions.
For eligibility, the vendor must be doing business on the streets before 24 March 2020 and be certified by the municipal body. Its objective is to bring stability in the life and business of street vendors by connecting them to institutional finance.
How much loan do you get?
Under this scheme, a total loan of up to Rs 50,000 can be taken in three phases.
1st Tranche – Loan up to Rs 10,000, for 12 months
2nd Tranche – Loan amount is Rs 15,000 to Rs 20,000, tenure is 18 months
3rd Tranche – Loan amount is Rs 30,000 to Rs 50,000, tenure is 36 months
Loan without guarantee and interest subsidy
The specialty of this scheme is that no guarantee of any kind is required for the loan. Also, on paying the installment on time, the government gives 7% annual interest subsidy directly to your account. On repaying the loan early, this subsidy is transferred in lump sum. Not only this, those who make certain digital transactions also get cashback up to Rs 1,200.
Who will give the loan
Under the scheme, scheduled commercial banks, regional rural banks, small finance banks, cooperative banks, non-banking finance companies, micro finance institutions and SHG banks will provide loans. The implementation partner for the scheme is Small Industries Development Bank of India (SIDBI). The mandatory KYC documents for the beneficiary are Aadhaar card and voter ID card. Apart from this, driving license, MNREGA card, PAN card are also included in the KYC documents. This loan can also be taken through Common Service Centers (CSC) spread across the country.
Top 10 banks giving loans under the scheme
State Bank Of India
Bank Of Baroda
Union Bank Of India
Punjab National Bank
Canara Bank
Bank of India
Indian Bank Central Bank of India
Indian Overseas Bank
Bank of Maharashtra.
Where and how to apply?
Website: www.pmsvanidhi.mohua.gov.in
Application can also be made through mobile app
You can contact the nearest Common Service Centre (CSC) or Banking Correspondent.