What is PM SVANidhi Yojana and how to apply for a street vendor loan

  • The Central Government recently launched the mobile application of the PM SVANidhi scheme on July 17.
  • This scheme aims to target over 50 lakh street vendors who would be eligible to avail of a working capital loan of up to ₹10,000.
  • Here’s all you need to know before applying for a vendor loan under PM SVANidhi Yojana.

The government’s scheme to bring relief for street vendors under the ambit of the Atma Nirbhar package has seen a response from over 1.5 lakh vendors. More than 1,54,000 street vendors have applied for loan across the country since the commencement of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme on July 02. Out of which over 48,000 have already been sanctioned by the government.

In a move to make this scheme more accessible, the Central Government recently launched the mobile application of PM SVANidhi Scheme on July 17.

What is the PM SVANidhi scheme?

The PM SVANidhi scheme was launched by the Ministry of Housing and Urban Affairs, on June 01, 2020. It aims to provide affordable working capital loans to street vendors to resume their livelihoods that have been affected due to the coronavirus lockdown.

a screenshot of a cell phone© PM SVANidhi Yojana

It targets over 50 lakh street vendors who would be eligible to avail a working capital loan of up to ₹10,000. The street vendors will be allowed to repay the loan in monthly installments in one year. If someone can pay earlier than the tenure, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries every quarter. And, there will be no penalty on early repayment of the loan.

What is PM SVANidhi Mobile App?

The PM SVANidhi Mobile App provides a user-friendly digital interface for Lending Institutions (LIs) & their field functionaries for sourcing as well as processing loan applications.

The application, along with others has an added feature of easy portability. The features range from e-KYC to processing of applications and real-time monitoring to vendor search in the survey data.

The application is easily available on Google play store for download.

“PM SVANidhi Mobile App is a step towards boosting the use of digital technology and will enable field functionaries of LIs like Banking Correspondents (BCs) and Agents of Non-Banking Financial Companies (NBFCs)/ Micro-Finance Institutions (MFIs), who have proximity with the street vendors, to ensure maximum coverage of the scheme. It is believed that launch of Mobile App will give impetus to the implementation strategy of the scheme besides promoting paperless digital access of micro-credit facilities by the Street Vendors,” the ministry said in a statement after the launch.

How to apply for a street vendor loan?

These are the pre-loan checks

  • Make sure you have all the documents handy. The requirements can be checked here.
  • Make sure your mobile number is linked to your Aadhaar.
  • Check your eligibility status here.

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