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PM SVaNidhi: Here's how street vendors can apply for loan facility

The PM SVANidhi scheme was launched by the Ministry of Housing and Urban Affairs, on June 01, 2020. It aims to provide affordable working capital loans to street vendors to resume their livelihoods that have been affected due to the coronavirus lockdown. Know how street vendors can apply for loan facility.

India TV Business Desk India TV Business Desk
New Delhi Updated on: July 26, 2020 13:39 IST
PM SVaNidhi: Here's how street vendors can apply for loan
Image Source : PTI

PM SVaNidhi: Here's how street vendors can apply for loan facility

The PM SVANidhi scheme was launched by the Ministry of Housing and Urban Affairs, on June 01, 2020. It aims to provide affordable working capital loans to street vendors to resume their livelihoods that have been affected due to the coronavirus lockdown. Over 2.6 lakh applications have been received, over 64,000 have been sanctioned and over 5,500 have been disbursed.

Prime Minister Modi expressed satisfaction on the use of end-to-end IT solution through a web-portal and mobile app for the administration of the scheme to ensure transparency, accountability and speed.

He stressed that the scheme should not be just seen from the perspective for extending loans to street vendors. Stating that the scheme can be seen as a part of an outreach to the street vendors for their holistic development and economic upliftment, PM said: "One step in this direction would be by capturing their entire socio-economic details to facilitate necessary policy interventions. Such data could also be used by different Ministries of Government of India to benefit them under various schemes for which they are eligible, on priority."

PM SVANidhi Scheme:

The Centre has launched PM SVANidhi Scheme to facilitate collateral-free working capital loan up to ₹10,000 of one-year tenure, to approximately, 50 lakh street vendors, to resume their businesses. Incentives in the form of interest subsidy (at 7 per cent per annum) and cashback (up to ₹1,200 per annum) are being provided to promote good repayment behaviour and digital transactions respectively. The interest subsidy effectively works out to 30 per cent of the entire interest burden for a loan of ₹10,000 at 24 per cent annual interest.

PM SVANidhi Mobile App

In a move to make this scheme more accessible, the Central Government recently launched the mobile application of PM SVANidhi Scheme on July 17.

The PM SVANidhi Mobile App provides a user-friendly digital interface for Lending Institutions (LIs) & their field functionaries for sourcing as well as processing loan applications.

How to apply for a street vendor loan?

These are the pre-loan checks

  •     Make sure you have all the documents handy. The requirements can be checked here.
  •     Make sure your mobile number is linked to your Aadhaar.
  •     Check your eligibility status here.

 

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