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Eligibility Criteria of PM SVANidhi Scheme

Achievements of the PM SVANidhi Scheme:

Challenges of the PM SVANidhi Scheme:

Over 50 lakh street vendors are expected to benefit from this initiative. To obtain the loan, a vendor must

  • Have a Certificate of Vending / Identity Card issued by an Urban Local Body (ULB)
  • The sellers that were identified in the street vendor survey but were not received a Certificate of Vending/ Identity Card
  • If a vendor is excluded from the survey, he or she must present one of the following papers in order to acquire a Letter of Recommendation (LoR) from Urban Local Bodies/TVC: 
  1. Documents proving a previous loan taken from a bank/NBFC/MFI for the purpose of selling
  2. Membership information, if a member of a street seller’s association such as NASVI, NHF, SEWA
  3. Any other documentation confirming that s/he is a vendor 
  4. The seller can also request that ULB perform a local inquiry to validate the validity of their claim for receipt of LoR by a simple application on white paper. 
  • Aadhaar Card/ Voter’s Identity Card/ Driving License/ MNREGA Card/ PAN Card is required as KYC documents. 

Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi)

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What is PM SVANidhi Scheme?

The government established the PM Street Vendor’s AtmaNirbhar Nidhi (PM Svanidhi) initiative in June 2020 to give financing for working capital to street vendors. Under this program, street vendors can get collateral-free loans with low-interest rates for a period of one year. The lockdowns caused by the COVID-19 pandemic affected everyone’s livelihoods, particularly those of street vendors. They typically have a moderate capital basis and their savings and capital base would have been consumed during the lockdown. Street vendors play an essential role in the city’s informal economy by ensuring that city people have access to services and goods at reasonable prices. As a result, there was an immediate need to supply them with loans for working capital so that they could restart their business....

PM SVANidhi Scheme Objectives:

1. Working Capital Loans...

Features of PM SVANidhi Scheme:

It is a central government-backed initiative, which means it is directly funded by the central ministries. Street sellers can avail of the use of this until March 2022. They can initially receive collateral-free loans and working capital of up to $10,000. In previous transactions, early or timely repayment might result in interest subsidies and a larger loan amount. Because of digital purchases, street merchants can now receive cash back incentives....

Achievements of the PM SVANidhi Scheme:

Interest subsidy in the amount of Rs 51 crore has been paid. Under PM SVANidhi, significant achievements has already been accomplished. According to the announcement, as of April 25, 31.9 lakh loans had been sanctioned and 29.6 lakh loans of Rs 2,931 crore had been disbursed....

Eligibility Criteria of PM SVANidhi Scheme:

Over 50 lakh street vendors are expected to benefit from this initiative. To obtain the loan, a vendor must...

Challenges of the PM SVANidhi Scheme:

Even while the initiative has received a great response from suppliers around the country, certain places lag behind others in terms of implementation due to a variety of issues. The Street Sellers Act of 2014, which requires a survey of vendors in order to provide them with a certificate of vending, has been applied unevenly across the country....

Related Frequently Asked Questions and Answers:

Q1. What is the PM SVANidhi Scheme?...

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Achievements of the PM SVANidhi Scheme:

Challenges of the PM SVANidhi Scheme: