PM Svanidhi Scheme Online Application Form | प्रधानमंत्री स्वनिधि योजना | PM Street Vendor’s Atmanirbhar Nidhi Loan Scheme | PM Svanidhi Scheme List of Beneficiaries | pmsvanidhi.mohua.gov.in Apply Online Process | Street Vendor Survey Search | Lenders List 2020-21
Central government has launched a new Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) Scheme on 1 June 2020. Under this PM SVANidhi Yojana, the Union govt. is providing short term loans of upto Rs. 10,000 to rehdi / patri valas (phereewala). People needs to apply online at the PM Street Vendor Atmanirbhar Nidhi Scheme official website pmsvanidhi.mohua.gov.in or can apply offline at banks or Common Service Centers to avail initial working capital loan. Moreover, people can also check their name in the PM Svanidhi Yojana list of beneficiaries by performing street vendor survey search at the beta version portal. The lenders list is also available at the portal.
The main objective of PM Street Vendor’s Aatmanirbhar Nidhi Yojana is to ensure that daily wage earners like vegetable seller, fruits seller earns their livelihood. These short term assistance of Rs. 10,000 will enable small street vendors to restart their work which is badly hit due to Coronavirus (COVID-19) lock-down. This scheme was earlier announced by FM Nirmala Sitharaman in the Rs. 20 lakh crore Atmanirbhar Bharat Abhiyan Package.
The PM Street Vendor Atmanirbhar Nidhi or PM SVANidhi Scheme will provide initial working capital required to purchase items for selling. Now check the PMSVA scheme guidelines, implementation, reviews by experts and complete details here.
PM SVANidhi Scheme 2020 Online Application / Registration Form
In order to provide initial working capital loan of upto Rs. 10,000, govt. has started PM Street Vendor Atmanirbhar Nidhi (PM SVANidhi) Scheme 2020. The apply online process for street vendor self reliant scheme has now been specified on 29 June 2020. Below is the complete process to apply by filling PM SVANidhi online application / registration form:-
- Firstly visit the official PM SVANIDHI Scheme Portal at http://pmsvanidhi.mohua.gov.in/
- The homepage of the PM Svanidhi Portal by MoHUA will appear as shown below:-
Direct Link: http://pmsvanidhi.mohua.gov.in/application-form.pdf
Important – Beta Version of PM Svanidhi Portal has been inaugurated by Secretary, Ministry of Housing and Urban Affairs (MoHUA) On 29 June 2020. The PM Svanidhi Portal shall start accepting online loan application from 2 July 2020 onward.
Check your Survey Status / Street Vendor Survey Search
People can now check their survey status whether they have been covered in the survey carried out by Urban Local Bodies(ULB) / Municipalities or not and can save your Survey Reference Number(SRN) for future Reference. Here is the direct link to check Street Vendor Survey Search:-
The page for PM Svanidhi Street Vendor Survey Search will appear as shown below:-
Here applicants will have to enter state, ULB name, name of street vendor, father / spouse name, mobile number, certificate of vending no. and then click at the “Search” button to check Survey Status.
Beneficiaries of PM SVANidhi Scheme
As per the initial data collected from state governments, around 50 lakh street vendors would be benefited from PM Street Vendor Atmanirbhar (PM SVANidhi) Scheme. The central govt. will extend a credit flow of Rs. 5,000 crore to this sector. Moreover, those street vendors who makes use of digital payments and timely repayments would be incentivized through monetary rewards.
It is important to mention that only a fraction of those 50 lakh phereevaala may have credit history with commercial banks as banks didn’t had a product designed for this sector. The major objective is to make street vendors self reliant and not fall in debt trap of lenders for such small amount.
Lenders List for PM SVANidhi Yojana
Here is the direct link to check lenders link for PM SVANidhi Yojana 2020-21:-
Upon clicking this link, the complete list of lenders will appear on your screen as shown below:-
You can then find the appropriate lender for you which is located near you and can avail loan benefits easily.
PM SVANidhi Scheme Guidelines
PM SVANidhi Yojana Detailed FAQ’s
Here are the most frequently asked questions (FAQ’s) about PM Svanidhi Yojana:-
1. What is PM Street Vendor’s Atmanirbhar Nidhi Yojana?
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. Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi is a special micro-credit facility scheme to providing affordable loans to street vendors. As livelihoods of these daily wage earners have been impacted seriously due to COVID-19 lockdown, govt. has started this scheme. The scheme will provide working capital loan to enable street vendors to resume their life. In this scheme, street vendors from peri-urban or rural areas would be the beneficiaries.
2. Who are Street Vendors/Hawkers?
Any person who works in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the general public. The street vendors may offer these services in the street, footpath, pavement etc. from either a temporary built-up structure or by moving from one place to another. The goods that are supplied by them are vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, artisan products, books/ stationery among others. The services provided by street vendors include barbershops, cobblers, pan shops, laundry services etc.
3. What are PM SVANidhi Scheme Objectives?
To provide working capital loan up to Rs 10,000 at a subsidised rate of interest. The govt. will incentivize regular repayment of loan and will reward digital transactions. The main objectives are:-
(i) To facilitate working capital loan up to 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 PM Svanidhi Yojana?
(i) Initial working capital of up to Rs. 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 are Target beneficiaries of PM SVANidhi Yojana?
The PM SVANidhi scheme targets to benefit over 50 lakh street vendors who had been vending on or before 24 March 2020 in urban areas. The street vendors belonging to the surrounding peri-urban or rural areas are also included under the urban livelihoods programme for the 1st time.
6. What is Duration & Interest Subsidy on Working Capital Loan?
In monthly installments, the PM SVANidhi loan is going to be repayable in 1 year duration. There is interest subsidy of 7% on timely / early repayment. On prompt repayment, the central govt. will provide interest subvention @ 7% p.a in the bank accounts of the beneficiaries through DBT mode on 6 months basis. Moreover on digital transactions, there would be incentives of monthly cash-back. The scheme tenure for implementation is upto March 2022.
7. Which lending institutions will provide credit under the PM SVANidhi Scheme?
For the successful implementation of the scheme, the Urban Local Bodies will play a significant role. The lending institutions under the scheme are Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies (NBFCs), Micro Finance institutions and Self Help Group banks.
8. What is the rationale of the PM Svanidhi Scheme?
The COVID-19 pandemic and consequent lock-down 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.
9. What is the amount of initial working capital loan?
The Initial working capital loan is upto Rs. 10,000/- for a tenure of one year.
10. I have an Identity Card /Certificate of Vending. How can I apply for the loan?
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.
11. How will I know that I am in the surveyed list?
You can access this information on the website of Ministry of Housing and Urban Affairs.
12. 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?
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.
13. I stay in the surrounding rural area and vend in the city. Am I eligible for the Scheme? If yes, what is the process?
14. I am a vendor from the city but not included in the survey. How can I avail benefits of the Scheme?
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) Documents of past loan taken from a bank/ NBFC/ MFI for the purpose of vending; or
(ii) If you are a member of street vendors’ association like NASVI, NHF, SEWA etc., your membership details; or
(iii) 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.
15. What are the KYC documents required in addition to CoV/ ID / LoR?
You may carry anyone of the following documents for KYC purpose:
(i) Aadhaar Card,
(ii) Voter’s Identity Card,
(iii) Driving Licence,
(iv) MNREGA Card,
(v) PAN Card.
16. What is the rate and amount of interest subsidy?
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 `10,000, if you pay all the 12 EMIs in time, you will get approximately Rs. 400 as interest subsidy amount.
17. Do I need to give any collateral to avail this loan?
No collateral security is required.
18. What is the amount of incentive for digital transactions?
The on-boarded vendors would be provided with a monthly cashback in the range of Rs. 50 to 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.
19. I am not familiar with digital transactions. Will there be any capacity building for doing that?
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.
20. Is there any incentive for timely/ early repayment of loan?
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.
21. Is there any penalty for repayment of loan before the scheduled date?
There is no penalty for pre-closure of the loan.
22. How can I enhance my chances of availing this loan?
You may become a part of Common Interest Group (CIG) formed by ULB or Joint Liability Group (JLG) formed by a lending institution.
23. Who all can I approach to avail the facility?
You may meet a member of SHG or ALF or CLF or call toll free number.
24. Will I get Identity Card for use?
Yes, you will be issued Provisional Identity Card on approval of loan and permanent CoV/ID will be issued within 30 days.
25. How long it will take to get the loan approved?
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.
26. Who should I contact for grievances?
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. The concerned official e-Mail ID is email@example.com, Tel: 011-23062850.
Check complete FAQ’s – http://pmsvanidhi.mohua.gov.in/Content/PDFDocs/FAQs.pdf
Commercial Banks Will Face Difficulty in Disbursing Loans
Central govt’s recent announcement to offer Rs. 10,000 loans to phereevaala (फेरीवाला) under PMSVA Nidhi scheme will put commercial banks in trouble. It is because commercial banks does not have any past experience in disbursing such small size loans in urban clusters. The new PM Street Vendor Atmanirbhar Scheme 2020 proposes bank credit facility for initial working capital upto Rs. 10,000 for each vendor.
In the nation wide Coronavirus (COVID-19) lockdown, street vendors suffered the most as these people are daily earners. This Rehdi / Patri Wala Loan scheme (रेहड़ी / पटरी वाला लोन योजना) will cover urban as well as rural vendors doing business in the adjoining urban areas. However, mainstream bankers are not excited with extension of such small amount of loans under PM Street Vendor Atmanirbhar Nidhi (PM SVANidhi) Scheme.
Difficulty in Credit Appraisal for Street Vendors Without Credit History
It is of major concern that how to do credit appraisal for an entity without any credit history. As per some of the bankers, self help group model which are followed to extend loans in the rural areas could be followed which is given below:-
A) In this model, a group comprising women borrowers mostly is formed with 10-12 individuals of a neighborhood in a rural area.
B) Here individuals of the group can take responsibility for timely repayment by other members. These groups are required to show savings habit, for at least 6 months, before lending can start.
Problems in Self Help Group (SHG) Model for PM SVANidhi Yojana
The main problem in SHG model for PM Street Vendor Atmanirbhar Nidhi (PM SVANidhi) Yojana is that it may not be feasible to form such a group in urban areas. People of urban areas are apprehensive to be a guarantor of another borrower in the group. Moreover, there is no time to build savings habit as the vendor requires the loan immediately.
Small Finance Banks, MFIs can Disburse Loans Speedily
It is believed that the micro finance institutions (MFIs), and small finance banks who focuses on lending money to urban poor could emerge as the key player to make Street Vendor Loan Scheme a success. SFBs and micro-finance institutions have customers who belong to these community and have expertise in extending small ticket loans.
Key to Implement PM Street Vendor Atmanirbhar Nidhi (PM SVANidhi) Yojana
In order to make Street Loan Vendor Scheme 2020 (दस हज़ार फेरीवाला कर्ज योजना) acceptable for lenders, certain key aspects should be kept in mind:-
Interest Rate – There is need to place an interest cap for such loans which should be linked with the cost of funds. Ideally, it should be linked to the MCLR [marginal cost of funds based lending rate] rather than the government prescribing a particular rate.
Speedy Disbursal – The success of this scheme depends on the speed at which the loan is delivered. For this purpose, govt. will have to keep documentation short and simple. It should be a single page document as the purpose of loan is speed and convenience at which it is delivered. If borrower runs around for a week, then they will lose interest. So, customer delight is one of the key implementation strategy.
Credit Guarantee – Loans under this scheme are likely to be under the Mudra scheme. Mudra loans are guaranteed by Credit Guarantee Trust for Micro And Small Enterprises (CGTMSE). It is not easy to get claims for CGTMSE in case there is a default. Many questions are asked to settle claims as well as loan appraisal report is seen. So in case of NPAs, these loans would incur losses for bankers.
Claim Settlement Criteria – To prevent bankers from loss, CGTMSE should clearly state the claim settlement criteria upfront. A deadline must be specified within which a claim should be paid and if not, then interest should accrue.
It is important that the Street Loan Vendor Scheme 2020 mechanism is effective. The finance ministry is expected to detail the contours of the दस हज़ार फेरीवाला कर्ज योजना in the next few days.