PM SVANidhi Scheme: Financial Support for Street Vendors

Telegram Group Join Now

The Pradhan Mantri Street Vendors’ AtmaNirbhar Nidhi (PM SVANidhi Yojana) is a revolutionary scheme initiated by the Government of India in June 2020, during the COVID-19 pandemic. This scheme was designed to provide financial assistance to street vendors who faced immense losses during the nationwide lockdowns. It aims to uplift these small vendors by offering collateral-free loans to help them restart or expand their businesses.

Table of Contents

PM SVANidhi Scheme

Due to the COVID-19 pandemic, economic activities suffered a complete halt. This had the most devastating effects on street vendors. These were people who relied on daily incomes to sustain their livelihoods. There was no way they could be able to survive with their businesses halted and facing financial misery.

To help these vendors and provide them with an opportunity for recovery, the PM SVANidhi Yojana was started. It provides the funds but also promotes digital payment and gives a reward for on-time repayment of the loan.

Also read : PM-KISAN Status Check: 19th Installment Date, Kyc Details

Key Features of PM SVANidhi Yojana

  • No Collateral Loans: Under this scheme, the amount sanctioned is ₹50,000, and that too without any security and collateral.
  • First Loan: ₹10,000
  • Second loan: ₹20,000 after repayment of the first loan
  • Third loan: ₹50,000 after paying the amount of the second loan
  • Interest Subsidy: An interest subsidy of 7% per annum is given by the government to the sellers for the prompt repayment of their loans.
  • Cashback on Digital Payments: To promote digital transactions, the government provides cashback up to ₹1,200 annually to the sellers, who use digital payment methods.
  • Low-Interest Rates: This loan, PM SVANidhi, has comparatively lower interest rates than the usual loan and is much more friendly for small vendors.
  • Easier Application Process: Applying for this loan is simpler with less paperwork.
Also Read  UP Scholarship 2025: Eligibility, Apply Online & Last Date

PM SVANidhi Yojana is For Whom?

PM SVANidhi Yojana targets street vendors who fall in the following criteria:

  • He or she must be an Indian citizen.
  • Their business operations have been there for at least two years on the sidewalk, footpath, or road.
  • Want to start a new business or expand their existing small businesses?
  • This scheme is not limited to a particular type of vendor. Street food vendors, vegetable vendors, small kiosk owners, and even vendors who are planning to launch their micro-business can avail themselves of this scheme.

How to Apply for PM SVANidhi Loan?

Applying for the PM SVANidhi Scheme is very easy and hassle-free. Here’s the step-by-step process:

  • Open the official website of PM SVANidhi: pmsvanidhi.mohua.gov.in.
  • Click on “Apply for Loan” on the homepage.
  • Fill in the details: name, address, Aadhaar number, and business details.
  • Upload all documents: identity proof, and vendor certificate.
  • Submit.
  • Upon approval, the loan amount gets credited directly to the bank account of the applicant.

Benefits of PM SVANidhi Scheme

  • Financial Help: Street vendors can now get back or expand their businesses with no collateral.
  • Incentives for repayment in time: The subsidy of 7% of interest encourages vendors to repay loans on time thereby less burden on them
  • Digital transactions: Cashback incentives drive the street vendor to change his business through digitalized payments.
  • Credit worth: On-time payment develops a vendor’s credit report. Hence a vendor becomes creditworthy, enabling him to secure more loans.
  • Business Scale-Up: The availability of second and third loans allows the vendors to scale up their businesses gradually.
Also Read  Manav Sampada UP: e-HRMS Login, Benefits & Application

Government’s Success with PM SVANidhi Scheme

As of December 2024, the government has disbursed 94.31 lakh loans under the PM SVANidhi Yojana which amounts to over ₹13,422 crores. The vendors have repaid over 40.36 lakh loans successfully which shows the scheme’s success and popularity.

This Union Ministry of Housing and Urban Affairs clarifies that no allegations of fraud have been raised against any lending institution under this scheme. Such transparency and efficiency ensure that the scheme reaches its intended beneficiaries.

Digital Payments and Modernization

The PM SVANidhi Scheme is critical to the inclusion of street vendors in the digital economy. This facility allows vendors to opt for digital payment, thereby enhancing their business and serving the vision of the government for a Digital India.

Benefits from digital payments are: 

  • Cash transaction dependency reduced
  • Improves business accountability.
  • It enables easy tracking of earnings by vendors.
  • Helps in building customer trust and convenience.

Also read : UP Scholarship Status 2024-25, Login, Registration & Last date

Conclusion 

PM SVANidhi Scheme is a transformative program that empowers street vendors. It provides financial stability, encourages digital payments, and promotes self-reliance among them.

For small vendors, it is not just a loan but a lifeline that aids them in rebuilding and achieving financial independence. Under this scheme, vendors can contribute immensely to the economy while improving their quality of life.

In a world where financial constraints are always seen to restrict small businesses, PM SVANidhi Yojana shines like a beacon light for every street vendor who would dream big, work hard, and prosper.

Leave a Comment