PM Svanidhi Scheme (Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi)

On June 1, 2020, the Ministry of Housing and Urban Affairs rolled out the PM Street Vendor’s AtmaNirbhar Nidhi (PM Svanidhi Scheme) program to help street vendors get back on their feet after the harsh impact of the Covid-19 lockdown. This initiative aimed to provide accessible working capital loans to these vendors, enabling them to restart their businesses and support their families. The scheme ran until March 2022, offering a lifeline to those most affected by the pandemic’s economic downturn.

Background Of PM Svanidhi Scheme

The background of the scheme is as under;

The COVID-19 pandemic has really hit street vendors hard, making it tough for them to earn a living.
These vendors typically operate on a shoestring budget, and many exhausted their savings during the lockdowns.
Getting access to credit through the PM Svanidhi Scheme could make a world of difference for these vendors, helping them get back on their feet and restart their businesses.

Objectives Of PM Svanidhi Scheme

The objectives of PM Svanidhi are as follows:

PM Svanidhi program offers vendors access to low-cost loans, enabling them to restart their businesses after the nationwide lockdown.
It encourages vendors to embrace digital payments by rewarding those who choose this method for repaying their loans.
To incentivize timely repayments, the program offers cash-back rewards and allows vendors to request larger loans for future needs as they maintain a good repayment record.

Salient Features of PM Svanidhi Scheme

The features of this scheme are as follows:

PM SVANidhi is a government program designed to help street vendors impacted by the COVID-19 pandemic.
It offers affordable loans to these vendors to support their businesses.
The scheme will run until March 2022.Street vendors can access an initial working capital loan of up to Rs. 10,000.Importantly, vendors don’t need to provide any collateral to get the loan, making it more accessible.
Vendors who repay their loans early or on time can benefit from a 7% interest subsidy.
By repaying their first loan on time, vendors increase their chances of qualifying for a larger loan in the future.
To encourage digital payments, vendors can receive a monthly cashback of Rs. 50 to Rs. 100.

Eligibility of PM Svanidhi Scheme

Here are the eligibility criteria for the Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM Svanidhi Scheme):

The applicant must be an Indian citizen.
The applicant must be between 18 and 60 years of age.
The applicant must have a valid proof of residence, such as a voter ID card, Aadhaar card, or ration card.
The applicant must have valid proof of vending activity, such as a certificate from the local authorities or a trade license.
The applicant must have a bank account in their name.
The applicant’s annual income must be less than Rs. 1.2 lakh.

Here are some additional eligibility criteria for the PM Svanidhi Scheme:

The applicant must be a street vendor who is engaged in the sale of goods or services.
The applicant must not have availed of any other government loan or subsidy scheme for self-employment.
The applicant must be willing to repay the loan in installments.

Benefits of PM Svanidhi Scheme

The intended benefits of the scheme are as follows:

Vendors are eligible for a working capital loan of up to Rs. 10,000, which they can repay in monthly installments over the span of 1 year.
This initiative encourages digital transactions by offering cashback of up to Rs. 100 per month.
Vendors have the opportunity to increase their credit limit through timely or early repayment of their loans.
Upon timely or early repayment, beneficiaries will receive an internet subsidy equivalent to 7% per annum.
This subsidy will be directly transferred to their bank accounts on a quarterly basis.
There will be no penalty charged for early repayment of the loan, providing vendors with flexibility in managing their finances.