PM Svanidhi Yojana 2024 : Benefits & Features, Eligibility

The Government of India often comes up with the new schemes for the benefits of their citizens, similarly the Government of India has launched the PM Svanidhi Yojana which stands for Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi Yojana. Under this scheme the government will provide credit for working capital to the street vendors. To avail the benefit under the scheme, the interested candidates can go through the official website at https://pmsvanidhi.mohua.gov.in/. Further in this article we will provide you the detailed description about the Scheme including Key Highlights, Objectives, Benefits & Features, Eligibility Criteria, Required Documents, Application Procedure for Loan under PM Svanidhi Yojana, etc.

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About PM Svanidhi Yojana

Ministry of Housing and Urban Affairs, Government of India has launched PM Svanidhi Yojana on 1st June 2020 for the street vendors of India. The lockdown due to COVID-19 pandemic negatively impacted the livelihoods of everyone, especially the street vendors. In India street vendors are known by various names in different areas and contexts such as vendors, thelewala, hawkers, theliphadwala, rehriwala, etc.  They supply goods such as vegetables, ready-to-eat street food, fruits, pakodas, tea, bread, textile, footwear, apparel, artisan products, stationery etc. Under this scheme the government provide credit for working capital to the street vendors. The street vendors can take collateral-free loans with low-interest rates for one year under this scheme.

The central government provides collateral free loan up to Rs 50,000 to eligible street vendors in incremental tranches. It provide loans in three tranches which is Rs. 10,000 in first tranche, Rs. 20,000 in second tranche and Rs. 50,000 in third tranche if the loan of the first and second tranche is repaid.

Key Highlights Of PM Svanidhi Yojana

Name of the Yojana	PM Svanidhi Yojana
Launched By	Ministry of Housing and Urban Affairs, Government of India
Launched Date	1st June 2020
Objective	To provide credit for working capital
No. of Beneficiaries	Citizens of India especially Street vendors
Benefits	The street vendors can take collateral-free loans with low-interest rates for one year
Beneficiary	Street Vendors of India
Mode of Application	Online
Official Website	https://pmsvanidhi.mohua.gov.in/

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Objectives Of PM Svanidhi Yojana

The objectives of the Scheme are as follows:

• The primary objective of launching the Scheme is to facilitate and provide working capital loans of up to Rs. 10,000 at a subsidized rate of interest.
• Another objective of the program is to incentivize regular repayment of the loan.
• The aim of the scheme is to reward digital transactions.

Benefits & Features Of PM Svanidhi Yojana

Here are some of the benefits & features of the Scheme, which are as follows:

• Under this scheme, the government provide credit for working capital to the street vendors.
• The street vendors can take collateral-free loans with low-interest rates for one year under this scheme.
• The central government provides collateral free loan up to Rs. 50,000 to eligible street vendors in incremental tranches.
• The scheme provide loans in three tranches which is Rs. 10,000 in first tranche, Rs. 20,000 in second tranche and Rs. 50,000 in third tranche if the loan of the first and second tranche is repaid.
• The street vendors who avail Working Capital loan under the scheme can get an interest subsidy at 7%. The interest subsidy amount is credited to the borrower’s account quarterly.
• This scheme provides an incentive for adopting digital transactions by street vendors through the cash-back facility.
• The onboarded vendors will receive incentives in the form of a monthly cashback in the range of Rs. 50 to Rs. 100.

Eligibility Criteria

To be a part of this Yojana, farmers should fulfill these eligibility criteria:

• Applicant should be a permanent resident of India.
• Street vendors who have an Identity card or Certificate of Vending issued by Urban Local Bodies (ULBs) are eligible for the scheme.
• Street vendors identified in the survey but have not been issued the Certificate of Vending or Identity Card. The Provisional Certificate of Vending will be generated for the street vendors in such cases.
• Street Vendors left out of the ULB led identification survey or who have started vending after the completion of the survey but have been issued with the Letter of Recommendation (LoR) by the ULB  or Town Vending Committee (TVC).
• Street vendors of the surrounding development or rural or peri-urban areas vending in the geographical limits of the ULB and have been issued with the Letter of Recommendation (LoR) by the ULB or TVC.

Required Documents

Some of the documents required for this program are as follows:

• Aadhaar Card/ Voter ID Card/ Driving License/ PAN Card/ MGNREGA Card
• Certificate of Vending or ID card issued by ULBs or Letter of Recommendation from ULB or TVC

Application Procedure For Loan Under PM Svanidhi Yojana

To apply for loan under this scheme, please follow the steps given below:

• Visit the official website at https://pmsvanidhi.mohua.gov.in/.

• Enter “Mobile Number” of street vendor. Select the check box of “I am not a robot” and click on “Request OTP”.
• Enter six digit OTP received on street vendor Mobile Number and click on “Verify OTP”. Upon verification of OTP, the user will successfully login.
• Do you have Aadhaar Card? Select as “Yes or No” option.
• Select the category of the street vendor.
• If the street vendor selects category as A, then SRN number will be asked. If SRN is not known, click on the link “Don’t have SRN? Find here”. A link for searching SRN will appear in new tab.
• To find SRN, choose state, enter the mobile number of the street vendor, and click on “Search”. (Mobile number should be as per the data sent to GoI i.e., updated in the portal.)
• SRN number with green colour will be displayed. Copy “SRN Number”.
• In the previous tab enter the “SRN” number and click on “Search”.
• SRN number along with street vendor details will be displayed. Confirm the SRN number by selecting the check box.
• Upload either “ID Card or Certificate of Vending or both”. After clicking on “Next”, the user will proceed to the Loan Application Form.
• If the street vendor selects categories as C or D, then the street vendor will be asked if they have been issued a “Letter of Recommendation” (LoR).
• If the street vendor has LoR, then select the option “I have been issued Letter of Recommendation (LoR) by ULB/TVC”.
• Upload the Letter of Recommendation and click on “Next”. After clicking on “Next” the user will proceed to the Loan Application Form.
• If the street vendor does not have an LoR, select the option “I have NOT been issued Letter of Recommendation (LoR) by ULB/ TVC”. The message box will appear as “You are requested to obtain LoR from concerned ULB/Municipality and then apply for loan”.
• Enter the Aadhaar Number of street vendor and click on “I am not Robot” and click on “Verify with OTP”.
• Street vendor can verify Aadhar with OTP.
• Fill in the personal information and click on “Save”.
• Fill in the family details only when your marital status is “Married”, also enter “Vendor ID Card Number” and “Certificate of Vending Number” issued by ULBs.
• Enter the address and vending details.
• Enter the bank account details and enter the Digital Payment details if the vendor is having, if not, then click “No”. After filling in the application form click on “Save”.
• Enter the first term loan amount required, loan amount must be between Rs. 5,000 to Rs. 10,000 and select the check box for “Loan Purpose” and click on “Save”. Click on “Submit”.
• The Street vendor will proceed to documentation section. Click on “Save”. Click on “Submit”.
• Select “Bank and Branch” you want to process the application for releasing loan or submit your application to “Marketplace” and tick “PM SVANidhi Declarations and Authorization”. Save and submit the application.
• You will receive a message as “Application Submitted”. Please note the Application Form Number in records for future reference.
• Click on ”Done” and the application status window will open. Street vendor will be able to see the PMS details.

FAQ’s