Rs.50,000/- Loan without Surety| PM Svanidhi Scheme Benefits

PM Svanidhi Scheme Benefits

The Central government of India for the purpose of Street vendors a Special scheme has been launched i.e. PM Svanidhi scheme or PM Street Vendor’s AtmaNirbhar Nidhi.

What is PM Svanidhi Scheme ?

This scheme is 100% funded by Ministry of Housing and Urban affairs with below objectives.

1. To provide a Working Capital Loan upto Rs.50,000/- in 3 instalments
2. To reward street vendors for their Digital transactions

Who are Eligible for this scheme?

This scheme is available only to the street vendors who are selling foods in urban areas. Simply this scheme is not applicable to the street vendors who are selling food in a rural areas.

Who are Street vendors ?

Only the street wonders who sells vegetables, Fruits, Ready-to-Eat street food, Tea, Pakodas, Breads, Egg sellers, Textile, Apparel, Footwear, Artisan products, Books/ Stationary etc., will come under the category of the street vendors.

Purpose of Loan ?

Under PM Svanidhi Scheme, the Street vendors can get a Loan of Rs.50,000/- rupees without providing any security or surety.

The nature of loan will be provided is Working Capital Term Loan. It means the Working capital in the form of Term loan will be sanctioned to the street vendors.

Complete Details of Loan

PM SVANidhi scheme is designed especially for Urabn Street vendors.

The urban Street vendors who are eligible to avail a Working capital loan upto Rs.10,000/- with loan tenure of 1 year. The borrowed loan amount should be repaid in Monthly instalments.

Those who wants to apply for this Loan, no collateral security or surety will be taken by the lending institutions.

The Urban Street vendors who have made on time payments or early repayments, then, they will be again eligible for the next cycle of Working capital loan with an enhance limit of Rs.20,000/- rupees.

Which States or Union Territories are eligible?

1. This scheme is available for all the urban beneficiaries belonging to the states and union territories who have been notified by the rules and scheme under the street vendors (protection of livelihood and regulation of street vending) act 2014

2. If you are from Meghalaya, then, Meghalaya state has its own Street vendors policy, it will be applicable to them.

Generally, “The Street Vendors Act 2014” extends to Whole of the India except for the state of the Jammu and Kashmir.

How much Loan will be sanctioned ?

The urban Street vendors are eligible to avail a Working Capital Loan of

1. Upto Rs.10,000/- ; Maximum 12 Months (1st Tranche)
2. Upto Rs.20,000/- ; Maximum 18 Months (2nd Tranche)
3. Upto Rs.50,000/- ; Maximum 36 Months (3rd Tranche)

Here, the word Tranche means “Instalment”

PM Svanidhi Scheme Benefits

1. The Street Vendors loan takers, if they repaid the loan within the time period of 1 year then, they will be eligible for the Additional benefits. 

2. Street vendors who are availing under this scheme are eligible to get an Interest subsidy @7% for all loans. This interest subsidy amount will be Credited to the street vendors account on a Quarterly basis.

3. The borrowers should submit Quarterly claims for the Interest subsidy.
Those claims to be submitted on each and every quarter of the Financial Year i.e. at the end of each Quarter
i.e. on 30th June, 30th September, 31st December and 31st March during each financial year.

4. The major advantage is that vendors who don’t have a Credit score can get from this Loan. The transactions trail so created will build the vendors Credit score, it will further enhance vendors future credit needs.

5. In case the payments are made through Digital transactions, then within a year the street vendors can get up to Rs.1,200/- rupees Cashback. 

6. Vendors can get both interest subsidy as well as the cashback. Totally, they can save up to Rs.1,602/- rupees.

Central government has launched the scheme for the street purpose. So those who are eligible for the skin can be applied for the purpose no fixed deposits can be mortgaged for the first timers 10000 loan will be provided that launch should be prepared with any period of 1 year.

PM Svanidhi Scheme Criteria

The Scheme is available to all street vendors engaged in vending in urban areas *. The eligible vendors will be identified as per following criteria:

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 but have not been issued Certificate of Vending / Identity Card;

Provisional Certificate of Vending would be generated for such vendors through an IT based Platform. 

ULBs are encouraged to issue such vendors the permanent Certificate of Vending and Identification Card immediately and positively within a period of one month.

3. Street Vendors, left out of the ULBled identification survey 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); and

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

Incentives 

Can vendors get any incentives ?
This scheme will provide incentives for the digital transactions made by the vendors through cashback facility.

The street vendors will promote the digital transactions for the networks like Paytm, Google pay, Bharat pay, Amazon pay, PhonePe etc. will provide a monthly cashback with a range of Rs.50-100 rupees per month.

Here, the eligible transactions for Cashback is that if through the above apps Digital Payout or Receipt is made with a Minimum value of Rs.25/- per transaction.  

Required documents

To apply for this loan, the street vendors should keep the below documents handy.

S.No.	Type of Document
1.	Aadhar card
2.	Aadhar Card link mobile number
3.	Vending certificate / urban local issued identity card

If no ID card is there, you can get from Vending committee or Urban local bodies recommendation letter

How to apply for this loan ?

You can apply for this loan in the online itself otherwise you can go to the common service centre to apply for this loan so you can choose your own option. Sexy how to apply in the online

Steps:
1. Open www.pmswanidhi.mohua.gov.in
2. There you can see two “Loan status” options.
a) Rs.10,000/- rupees loan and
b) the second one is Rs.20,000/- rupees loan.

3. If you are applying first time, then Click on Rs.10,000/- rupees loan option.
4. If you are applying for the second time then select Rs.20,000/- loan option
5. Then a new window will be opened.
6. In the application form, you should enter your Aadhaar number or Mobile number
7. Then, you will get OTP to your registered mobile number and enter it.
8. Now, all the necessary documents should be uploaded.
9. Finally check all the submitted documents and details. Once everything is checked, then, you can submit the application.

Frequently Asked Questions [FAQ]

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