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The impact of the COVID-19 induced lockdown was severe on all businesses, including street vendors. Realising the intensity of the impact, and to provide relief to street vendors, the government of India introduced PM SVANidhi yojana scheme – a special scheme for street vendors, under the Ministry of Housing and Urban Affairs (MoHUA). Full form of PM SVANidhi is Prime Minister Street Vendor’s AtmaNirbhar Nidhi. This article explains what PM SVANidhi scheme is, its features, eligibility criteria and application process.

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What is PM SVANidhi Yojana scheme?

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi or PM SVANidhi was launched in June 2020. It provides collateral-free short term working capital loans to street vendors with minimal documentation. Originally, when the scheme was launched, it was to be valid till December 2022. However, considering the response it has received, validity is extended to December 2024.

Features of PM SVANidhi scheme

  • Loan amount: The eligible street vendor can obtain a working capital loan of up to ₹10,000.
  • No requirement of collateral: PM SVANidhi scheme offers unsecured or collateral free loan. You do not have to promise any collateral while availing the loan.
  • Repayment period: It is a short term loan and needs to be repaid in a period of 12 months.
  • No processing charges: There are no processing charges applicable on a loan under the PM SVANidhi scheme.
  • Pre-payment benefit: If you repay the loan amount before the schedule, you will get a subsidy of 7% on the interest amount. The subsidy is directly transferred to your bank account.
  • Cashback on digital repayment: In order to encourage digital transactions, MoHUA offers cashback in the range of ₹50-₹100 on digital repayment.

An interesting fact about the PM SVANidhi scheme:From June 2020 to 2022, more than 40.07 lakh loans were disbursed under the PM SVANidhi scheme. The total disbursed loan amount is worth ₹4,606.36 crore.

Eligibility criteria for PM SVANidhi yojana

Here are the eligibility criteria for availing loan under the Prime Minister Street Vendor’s AtmaNirbhar Nidhi.

  • Street vendors (hawkers, thelewala, rehriwala, theliphadwala, etc.) who have been engaged in street vending in urban areas before the cut-off date i.e., March 24, 2020, are eligible for the scheme.
  • You must have a vending certificate/identity card which is usually issued by Urban Local Body (ULB).

Documents required for PM SVANidhi scheme

Generally, common documents required for any MSME loan include KYC documents and financial documents. However, the PM SVANidhi yojana scheme is especially designed for street vendors, and requires minimal documentation. Also, the loan amount is significantly low. As a result, the required documents are different. Here is a list of documents required for availing of the PM SVANidhi scheme.

A certificate of vending or Identity Card issued by ULB is a mandatory document for availing of the loan. If you are left out from the survey or may have started the business after the survey was conducted, you can obtain a Letter of Recommendation (LoR) for getting a loan under the PM SVANidhi scheme.

Apart from that you may also require KYC documents such as

  • Aadhaar card
  • PAN card
  • Driving license
  • Voter ID card
  • MNREGA card

Note: It is best to approach the lender and get the list of documents required for obtaining a loan under the PM SVANidhi scheme as the requirement may vary from time to time.

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How to apply for a loan under the PM SVANidhi yojana scheme

Here is a step-by-step guide for you to apply for a loan under the PM SVANidhi scheme.

  • Visit the website of PM SVANidhi scheme – pmsvanidhi.mohua.gov.in
  • Click on ‘Apply Loan 10K’.
  • Enter your mobile number and captcha that you see on the screen and click on ‘Request OTP
  • Enter the OTP that you have received on your mobile, click on ‘Verify OTP
  • Select your vendor category.
  • Upload required documents such as Vending Certificate/Survey Reference Number/LoR, etc.
  • Enter the Aadhaar Card number and verify it with an OTP. (Ensure that your Aadhar Card and mobile number are linked beforehand). Click on ‘Submit’.
  • Tick on the check box to agree to the declaration.
  • Click on ‘Submit’ to complete the process of application.
  • The system will generate the application number and the same will be shown when you get a message about the successful application process. Note down the application number, as you will require it later for checking the status.

How to check the status of an application for the PM SVANidhi?

You can easily check the status of your application by visiting the PM SVANidhi scheme portal.

  • Click on ‘Know Your Application Status’ on the home page.
  • Enter your application number and your mobile number. Click on ‘Request OTP
  • Enter OTP and click on ‘Search’ to get the status.

Frequently asked questions about the PM SVANidhi scheme (FAQQs)

Here are some answers to frequently asked questions about the PM SVANidhi yojana.

Who is classified as a street vendor?

As per guidelines of PM Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) scheme, a street vendor is any person who is engaged in vending 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.

Which lending institutions provide credit and who is the implementation agency?

The Small Industries Development Bank of India (SIDBI) is the implementation agency for the PM SVANidhi. While the credit providing institutions include: Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions and SHG Banks.

What is the rate of interest?

The prevailing rate of interest of the lending institution is applicable to the loans disbursed under the PM SVANidhi scheme. The rates of interest are regulated by the guidelines of the Reserve Bank of India.

How to obtain a LoR or Letter of Recommendation?

In case you do not have a vendor certificate, you can apply for a LoR from PM SVANidhi’s portal. Here are the steps to apply for LoR.

  • Click on the ‘Apply LoR cum Loan’ button.
  • Enter your mobile number and click on ‘Request OTP’.
  • Enter OTP.
  • Fill in the required details in the application form and upload documents such as proof of any loan taken in the past from a bank or NBFC for the purpose of vending, proof of having availed of one-time assistance from the state/UT, membership details of any of the vendor associations, etc.
  • Click on ‘Submit

Concluding thoughts

  • If you plan to obtain a loan under PM SVANidhi yojana, first, check your eligibility. The scheme is only open for hawkers and street vendors. If you are eligible, collate the required documentation.
  • Once you apply for the loan, check the status regularly, so that you know when it is approved.
  • Once the loan is disbursed, focus on repaying it digitally. It can give you rewards through cashback.