Empowering Street Vendors: All You Need to Know About PM SVANidhi Scheme and How to Apply
Launched on June 01, 2020, the PM SVANidhi scheme is a special micro credit scheme to allow collateral-free working capital loans of up to 10,000 to street vendors. It promises a 7% interest subsidy (directly transferred to the borrower's account) on timely repayment, and no penalty on early repayment of the loan.
Further, it incentivizes digital transactions with a cashback of up to 1,200 per year. The scheme was extended to all street vendors vending in urban areas, including those coming from the surrounding development/ peri-urban/ rural areas and vending within the geographical limits of the Urban Local Bodies (ULBs).
Monthly cash-back incentive up to Rs. 100 on digital transactions is also given. You can get it by undertaking a certain number of digital transactions.
If you repay the first loan in a timely manner, you become eligible for a higher loan amount in the second and third loan tranches of up to Rs.20,000 and Rs.50,000 respectively.
A person who is engaged in vending of any article, wares, food items, goods, or merchandise which are of daily use or offers service in a street, footpath, pavement, etc., from a temporary built up structure to the public or moves from place to place to do the same.
He/she may be supplying goods such as fruits, vegetables, ready-to-eat street food, breads, eggs, textiles, tea, pakodas, apparel, artisan products, books/ stationary items, etc. The services listed in the above are barber shops, pan shops, laundry services, cobblers, etc.
1. Street vendors in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBS).
2. The vendors, who have been identified in the survey done by Urban local body but have not been issued Certificate of Vending / Identity Card.
3. Street Vendors who have been left out of the ULB-led identification or who have started vending after completion of the survey and have been issued Letter of Recommendation (LOR) to that effect by the ULB/Town Vending Committee (TVC).
4. The vendors of surrounding development/ peri-urban/rural areas vending in the geographical limits of the ULBS and have been issued Letter of Recommendation (LOR) to that effect by the ULB / TVC.
Aadhaar Card - Mandatory (Except in Assam & Meghalaya)
Voter Identity Card - Mandatory (In Assam & Meghalaya)
Driving License
MNREGA Card
PAN card
Those who have an Identity Card /Certificate of Vending can approach ULB/ Common Service Centre (CSC)/ Banking Correspondent (BC)/ Agent of Micro Finance Institution (MFI) in their area. This person/s will help you in filling up the application and also help in uploading the documents in a Mobile App/ Portal.