PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) A Special Micro-Credit Facility for Street Vendors

This is a Central Sector Scheme to facilitate street vendors to access affordable working capital loan for resuming their livelihoods activities, after easing of lockdown.

Objectives of the Scheme:

(i) To facilitate working capital loan up to Rs.10,000 at subsidized rate of interest

(ii) To incentivize regular repayment of loan and

(iii) To reward digital transactions.

Salient features of the Scheme:

(i) Initial working capital of up to Rs. 10,000/-

(ii) Interest subsidy on timely/ early repayment @ 7%

(iii) Monthly cash-back incentive on digital transactions

(iv) Higher loan eligibility on timely repayment of the first loan.

•  The target beneficiary for the Scheme are Street vendors/ hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas.
• The Scheme is available for beneficiaries belonging to only those States/UTs which have notified Rules and Scheme under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
• Beneficiaries from Meghalaya, which has its own State Street Vendors Act may, however, participate.
• Street Vendor/hawker are Any person engaged in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement etc., from a temporary built up structure or by moving from place to place.
• The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, artisan products, books/ stationary etc. and the services include barber shops, cobblers, pan shops, laundry services etc. 
• The lending institutions which will provide credit for this scheme are Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions and SHG Banks.
• The  tenure of the Scheme shall be implemented up to March, 2022.
• The Initial working capital loan is upto Rs.10,000/- for a tenure of one year.

The Scheme is available to vendors of surrounding development/ peri-urban/ rural areas vending in the geographical limits of the cities/ towns and those left out of the survey. If someone belong to this category they have to produce one of the following documents to obtain the Letter of Recommendation from ULB/TVC:

(i) Proof of availing one -time assistance, provided by certain States /UTs, during the period of lockdown; or

(ii) Documents of past loan taken from a bank/ NBFC/ MFI for the purpose of vending; or

(iii) The membership details with the vendors associations; or

(iv) Any other documents to prove that you are a vendor

They can also request ULB through a simple application on white paper to conduct local enquiry to ascertain the genuineness of your claim.

After receipt of LoR, they may approach BC/ Agent to apply for the loan. 

The KYC documents required in addition to CoV/ ID / LoR

1. Aadhaar Card(Mandatory)
2. II. Voter Identity Card(Mandatory)
3. III. Driving License
4. IV. MNREGA Card
5. V. PAN Card. 

• The rate of interest subsidy 7%.
• The interest subsidy amount will be credited directly in your account on quarterly basis.
• In case of early payment, the admissible amount of subsidy will be credited in one go.
• For a loan of Rs.10,000, if you pay all the 12 EMIs in time, you will get approximately Rs.400 as interest subsidy amount.
• No collateral security is required.

The on-boarded vendors would be provided with a monthly cashback in the range of Rs.50 – Rs.100 as per the following criteria as a incentive for digital transactions:

(i) On executing 50 eligible transactions: Rs.50

(ii) On executing the next 50 eligible transactions: Additional Rs.25 and

(iii) On executing the next 100 eligible transactions: Additional Rs.25. Each transaction > Rs.25 will be counted.

• Also on timely/ early repayment of loan of initial working capital, a vendor becomes eligible to avail a higher tranche of loan in next cycle.
• There is no penalty for pre-closure of the loan.
• Identity Card for use  will be issued Provisional Identity Card on approval of loan and permanent CoV/ID will be issued within 30 days.
• Complete process will be automated through a Mobile App and Web Portal.
• However, user will be able to check the real time status of your application.
• Whole process, if paper/ information is complete, may take less than 30 days.
• In case of any grievance, you may contact the following officer in the Ministry: Director (NULM), Ministry of Housing & Urban Affairs, Nirman Bhawan, Maulana Azad Road, New Delhi – 110011