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August 14, 2020

Get your Maid & Street Vendor Rs 10K collateral free Loans Online from PM SVANidhi scheme

by facelesscompliance in Compliance Law

Get your Maid & Street Vendor Rs 10K collateral free Loans Online from PM SVANidhi scheme

Number of loan sanctions under the schemecrosses 1 lakh

The number of loan sanctions and number of applications received under PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme have crossed the mark of 1 lakh and 5 lakhs respectively within 41 days of commencement of the lending process on July 02, 2020.

The PM SVANidhi scheme has generated considerable enthusiasm among the street vendors, who have been looking for access to affordable working capital credit for re-starting their businesses post COVID-19 lockdown.

The PM SVANidhi Scheme was launched by Ministry of Housing & Urban Affairs under the ambit of ‘AtmaNirbhar Bharat Abhiyan’. It aims at facilitating collateral free working capital loans upto Rs 10,000 of 1 year tenure, to about 50 lakh street vendors in the urban areas, including those from the surrounding peri-urban/ rural areas, to resume their businesses post COVID-19 lockdown.

Incentives in the form of interest subsidy @ 7% per annum on regular repayment of loan, cashback upto Rs 1,200 per annum on undertaking prescribed digital transactions and eligibility for enhanced next tranche of loan have also been provided.

Follow 3 STEPs before starting the online Application Process:

1. Understand the loan application requirements

click on https://pmsvanidhi.mohua.gov.in/

Properly understand the information & documents required to fill the Loan application form (LAF) for the Scheme. Keep all the information ready before you start the application process.

2. Make sure your mobile number is linked to your Aadhaar

You are requested to make sure that your mobile phone is linked to your aadhaar number. This will be required for your e KYC/Aadhaar validation during online application process. It will also help you to get letter of Recommendation from ULB (in case required). It will also help you avail future benefits under Government welfare schemes.

It is understood from UIDAI officials that for updating mobile numbers, only a form has to be filled and no additional document is required. A link to UIDAI portal where you can find details of the nearest Aadhaar centre is provided below.

3. Check your eligibility status as per scheme Rules ion to be kept ready

You will fall in one of the following 4 categories of Street vendors. Check your status and the documents/ information which you need to keep ready

PM SVANidhi Scheme envisages bringing ‘Banks at the door steps’ of these ‘nano-entrepreneurs’ by engaging the Non-Banking Financial Companies (NBFCs) and the Micro-Finance Institutions (MFIs) as lending institutions in addition to Scheduled Commercial Banks – Public & Private, Regional Rural Banks, Cooperative Banks, SHG Banks etc.

The onboarding of the vendors on digital payment platforms is a very important component to build the credit profile of the vendors to help them become part of the formal urban economy.

Small Industries Development Bank of India (SIDBI) is the implementation partner for the scheme. A graded guarantee cover is provided, on portfolio basis, to these lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to encourage lending to street vendors.

The street vendors mostly operate their businesses on very thin margins. The micro-credit support under the scheme is expected to provide not only major relief to such vendors but also help them climb the economic ladder. Use of an integrated IT Platform (pmsvanidhi.mohua.org.in), Web Portal and Mobile App, has enabled the Scheme to extend its reach and benefits to this segment of society with the objective of minimum government and maximum governance.

Frequently Asked Questions PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) A Special Micro-Credit Facility for Street Vendors


1. What is the Scheme?

Answer: This is a Central Sector Scheme to facilitate street vendors to access affordable working capital loan for resuming their livelihoods activities, after easing of lockdown.

Answer: The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base, which they might have consumed during the lockdown. Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.

3. What are the objectives of the Scheme?


 (i) To facilitate working capital loan up to Rs. 10,000 at subsidized rate of interest;

(ii) To incentivize regular repayment of loan; and

(iii) To reward digital transactions.

4. What are the salient features of the Scheme?


(i) Initial working capital of up to `10,000/-

(ii) Interest subsidy on timely/ early repayment @ 7%

(iii) Monthly cash-back incentive on digital transactions

(iv) Higher loan eligibility on timely repayment of the first loan.

5. Who is the target beneficiary for the Scheme?

Answer: Street vendors/ hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas.

6. Who is a Street Vendor/hawker?

Answer: Any person engaged in vending of 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. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, artisan products, books/ stationary etc. and the services include barber shops, cobblers, pan shops, laundry services etc.

7. Which lending institutions will provide credit?

Answer: Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions and SHG Banks.

8. What is the tenure of the Scheme?

Answer: The Scheme shall be implemented up to March, 2022.

FAQs for Beneficiaries

1. What is the amount of initial working capital loan?

Answer: The Initial working capital loan is up to Rs. 10,000/- for a tenure of one year.

2. I have an Identity Card /Certificate of Vending. How can I apply for the loan?

Answer: You can approach a Banking Correspondent (BC)/ Agent of Micro Finance Institution (MFI) in your area (ULBs will have the list of these persons). They will help you in filling up the application and upload the documents in a Mobile App/ Portal.

3. How will I know that I am in the surveyed list?

Answer: You can access this information on the website of PMSVANidhi (pmsvanidhi.mohua.gov.in)

4. My name is in the list of surveyed vendors, but I do not have either Identity Card or Certificate of Vending? Can I avail the loan facility? If yes, what is the process?

Answer: Yes, you can still avail the Scheme benefits. A Provisional Certificate of Vending would be issued to vendors through an IT based Platform. The BC/ Agent will help you in filling up the application and upload the documents in a mobile App/ Portal.

5. I stay in the surrounding rural area and vend in the city. Am I eligible for the Scheme? If yes, what is the process?


6. I am a vendor from the city but not included in the survey. How can I avail benefits of the Scheme?

Answer: The Scheme is available to vendors of surrounding development/ peri-urban/ rural areas vending in the geographical limits of the cities/ towns and those left out of the survey. If you belong to this category you have to produce one of the following documents to obtain the Letter of Recommendation from ULB/TVC:

(i) Proof of availing one -time assistance, provided by certain States /UTs, during the period of lockdown; or

(ii) Documents of past loan taken from a bank/ NBFC/ MFI for the purpose of vending; or

(iii) The membership details with the vendors associations; or

(iv) Any other documents to prove that you are a vendor; You can also request ULB through a simple application on white paper to conduct local enquiry to ascertain the genuineness of your claim. After receipt of LoR, you may approach BC/ Agent to apply for the loan.

7. What are the KYC documents required in addition to CoV/ ID / LoR?


I. Aadhaar Card*

II. Voter Identity Card*

III. Driving License


V. PAN Card.

8. What is the rate and amount of interest subsidy?

Answer: The rate of interest subsidy 7%. The interest subsidy amount will be credited directly in your account on quarterly basis. In case of early payment, the admissible amount of subsidy will be credited in one go. For a loan of Rs. 10,000, if you pay all the 12 EMIs in time, you will get approximately Rs. 400 as interest subsidy amount.

9. Do I need to give any collateral to avail this loan?

Answer: No collateral security is required.

10. What is the amount of incentive for digital transactions?

Answer: The on-boarded vendors would be provided with monthly cash back in the range of Rs. 50 – Rs. 100 as per the following criteria:

(i) On executing 50 eligible transactions: `50;

(ii) On executing the next 50 eligible transactions: Additional `25; and

(iii) On executing the next 100 eligible transactions: Additional `25. Each transaction > `25 will be counted.

11. I am not familiar with digital transactions. Will there be any capacity building for doing that?

Answer: An agent from MFI/ payment aggregator will approach you to onboard and help in conducting sample transactions. You will also be provided with a debit card and a QR code.

12. Is there any incentive for timely/ early repayment of loan?

Answer: Yes, on timely/ early repayment of loan of initial working capital, a vendor becomes eligible to avail a higher tranche of loan in next cycle.

13. Is there any penalty for repayment of loan before the scheduled date?

Answer: There is no penalty for pre-closure of the loan.

14. How can I enhance my chances of availing this loan?

Answer: You may become a part of Common Interest Group (CIG) formed by ULB or Joint Liability Group (JLG) formed by a lending institution.

15. Who all can I approach to avail the facility?

Answer: You may meet a member of SHG or ALF or CLF or call toll free number.

16. Will I get Identity Card for use?

Answer: Yes, you will be issued Provisional Identity Card on approval of loan and permanent CoV/ID will be issued within 30 days.

17. How long it will take to get the loan approved?

Answer: Complete process will be automated through a Mobile App and Web Portal. You will be able to check real time status of your application. Whole process, if paper/ information is complete, may take less than 30 days.

18. Who should I contact for grievances?

Answer: In case of any grievance, you may contact the following officer in the Ministry:

Director (NULM),

Room no.334-C,

Ministry of Housing & Urban Affairs,

Nirman Bhawan,

Maulana Azad Road, New Delhi – 110011

e-Mail: neeraj.kumar3@gov.in

Tel: 011-23062850.

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