About
- PM-SVANidhi is a Central Sector Scheme, i.e., fully funded by the Ministry of Housing and Urban Affairs with the following objectives:
- To facilitate working capital loan;To incentivize regular repayment; and
- To reward digital transactions
- Introduction of 3rd term loan of up to ₹50,000 in addition to 1st & 2nd loans of ₹10,000 and ₹20,000 respectively.
- The loans would be without collateral.
Lending Agencies
Microfinance Institutions, Non-Banking Financial Companies, Self Help Groups have been allowed due to their ground-level presence and proximity to the urban poor, including the street vendors.
Eligibility
States/Union Territories (UTs):
- The Scheme is available for beneficiaries belonging to only those States/UTs that have notified Rules and Scheme under the 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 Vendors
- The PM-SVANidhi Scheme is available to all street vendors engaged in vending in urban areas.
- Earlier, the Scheme was available to all street vendors engaged in vending on or before March 24, 2020.
- To avail of the loan, a vendor must possess a Certificate of Vending or ID card from Urban Local Bodies (ULBs).
- Vendors identified but without a card can get a Letter of Recommendation (LoR) from ULB/TVC with documents like past bank loans, vendor association membership, or local inquiry applications.
- KYC documents needed are an Aadhaar Card, Voter ID, Driving License, MNREGA Card, or PAN Card.
Benefits of Early Repayment
- Interest Subsidy: On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through direct benefit transfer on a six monthly basis.
- Credit Limits Extension: The scheme provides for the rise of the credit limit on timely/ early repayment of loans i.e. if a street vendor repays the installments on time or earlier, he or she can develop his or her credit score that makes him/her eligible for a higher amount of term loan.
- No-Penalty on Early Repayment:
- There will be no penalty on early repayment of loan.
- Early repayment (or resettlement) is a clearance of debt or loan before the scheduled time.
- Many banks and lenders charge penalties for repaying loans early.
E-governance
- Encourage Digital Transactions: The scheme incentivizes street vendors to engage in digital transactions through monthly cash back.
- Transparency:
- In line with the vision of leveraging technology to ensure effective delivery and transparency, a digital platform with web portal/ mobile app is being developed to administer the scheme with end-to-end solution.
- This platform will integrate the web portal/ mobile app with UdyamiMitra portal of SIDBI for credit management and PAiSA portal of MoHUA to administer interest subsidy automatically.
- Financial Inclusion: It will help in integrating the vendors into the formal financial system.
Focus on Capacity Building
MoHUA, in collaboration with State Governments, will launch a capacity-building and financial literacy program for all the stakeholders and Information, Education, and Communication (IEC) activities throughout the country.
Role of Urban Local Bodies (ULBs)
ULBs will play a pivotal role in the implementation of the scheme by ensuring to target the beneficiary and reaching to them in an efficient manner.
Who is a Street Vendor/hawker?
- 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.
- Around 49.48 lakh street vendors have been identified in India.
- Uttar Pradesh has the maximum at 8.49 lakh, followed by Madhya Pradesh at 7.04 lakh.
- Delhi has only 72,457 street vendors.
- No street vendor has been identified in Sikkim.
