Vegetable vendors, fruit sellers, and tea-stall vendors who are connected to our lives every day in cities and towns often face financial difficulties. During the coronavirus epidemic, their livelihood was completely snatched away. To make these people self-reliant again and promote self-employment, the central government launched the Pradhan Mantri Swanidhi Yojana in June 2020. Under this scheme, small loans are made available to street vendors without a guarantee, so that they can restart their work.
Recently, the government has updated this scheme, which includes a credit card with a limit of up to Rs 30 thousand and an additional loan of Rs 10 thousand. Today, this scheme is proving to be a means of economic support and development for lakhs of street vendors.
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What is PM SVANidhi Yojana
The Pradhan Mantri Street Vendor Atmanirbhar Nidhi (PM SVANidhi) is a micro-credit scheme launched by the Central Government in June 2020. Its objective is to provide affordable loans to street vendors affected by the COVID-19 pandemic to restart their business. Earlier, small vendors often relied on high-interest moneylenders, but this scheme connected them to the formal banking system and also inspired them towards digital transactions.
Objective of PM SVANidhi Yojana
The main objective of this scheme is to provide economic strength to small vendors. Through this, it includes promoting self-employment, encouraging digital transactions, and connecting the poor and unorganized sections to the banking system. Along with this, this scheme is also proving to be helpful in maintaining livelihood opportunities in cities.
Loan facilities in PM SVANidhi Yojana
Under this scheme, loans are given in three phases. The first loan is of Rs 10 thousand, which has to be repaid in 12 months. On timely repayment, a second loan of up to Rs 20,000 is available, which is repaid in 12 to 18 months. After this, a third loan of Rs 30 to 50 thousand is available, which has to be repaid in 18 to 36 months. The government gives an interest subsidy of up to 7 percent on these loans, and a cashback of up to Rs 100 per month is also available on making digital payments.
Features of PM Swanidhi Yojana
The biggest feature of the PM Swanidhi Yojana is that it does not require any kind of guarantee. The interest rate is very low, and the government also gives a subsidy. There is no additional charge for repaying the loan before the time. More than 25 lakh street vendors have benefited from this scheme so far.
PM Swanidhi Yojana Eligibility Criteria
This scheme is only for street vendors working in urban and town areas. For this, it is necessary to have a vending certificate or ID card. If someone’s name is missed in the local body survey, then eligibility can also be achieved on the basis of a recommendation letter.
PM Swanidhi Yojana Required Documents
To avail the benefits of the scheme, it is necessary to have an Aadhaar card, mobile number (linked to Aadhaar), bank passbook, and vending certificate or identity card. Those who do not have a certificate will have to get verification from the local body.
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PM Swanidhi Yojana Application Process
An application for the scheme can be made online. For this, one has to go to the official portal and log in with a mobile number and OTP. After this, the vendor category and survey reference number have to be filled. After submitting the bank details, the application is submitted. The form can also be filled out through the Common Service Center (CSC). However, at present, new applications have been temporarily stopped due to updating the scheme.