Affordable working capital loans with zero collateral

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.

Street vendors/ hawkers vending in urban areas, including the vendors of surrounding peri-urban and rural areas.

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.

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

The Scheme shall be available till December 2024. Interest Subsidy claims on all loans will be paid till March 2028.

The Initial working capital loan is upto ₹10,000/- for a tenure of one year. Clients are eligible for higher ticket size loan with a longer tenure during subsequent cycle on timely repayment of their previous 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. You can also apply directly though the PM SVANidhi website. Link to the website is also present in the PM SVANidhi webpage on the Utkarsh Bank Portal.

You can access this information on the website of PM SVANidhi [pmsvanidhi.mohua.gov.in].

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.

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.

I. Aadhar Card* II. Voter Identity Card* III. Driving License IV. MNREGA Card V. PAN Card. *Mandatory

Beneficiaries availing loans under the Scheme are eligible to get an Interest Subsidy @7% for all the loans i.e 1^st,2^nd and 3^rd loans. Interest Subsidy claims will be paid only for Standard accounts [non-NPA as per extant RBI guidelines] on the respective claim dates and only for the period during which the account has remained Standard. Interest Subsidy claims to be paid on half-yearly basis. Accordingly, USFB will submit half-yearly claims for interest Subsidy as on June 30 and December 31 of each Year. However, interest subsidy claims for the period ending on June 30,2022 would be filed on quarterly basis. In case of early payment, the admissible amount of subsidy will be credited in one go. E.g: For a loan of ₹10,000, if you pay all the 12 EMIs in time, you will get approximately ₹ 402 as interest subsidy amount.

No collateral security is required.

The on-boarded vendors would be provided with a monthly cashback in the range of ₹50 - ₹100 as per the following criteria: [i] Eligible Digital Transaction [ETD] to be a digital transaction of any value; [ii] Rs.1 Cashback per EDT till the First 50 EDTs; [iii] Rs.0.50 per EDT for the next 50 EDTs and [iii] Rs.0.25 per EDT for next 100 EDTs. Clients are eligible for a maximum cashback of ₹1,200 per annum.

The Lending institution providing you loan will approach you to onboard, provide digital training and help in conducting penny drop transactions. You will also be provided with a debit card and a QR code.

No, there is no incentives on timely/ early repayment of loan, but the street vendor becomes eligible for interest subsidy and also avail a higher tranche of loan in subsequent cycle subjected to fulfilling the minimum eligibility criteria.

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

You may meet a member of SHG or ALF or CLF or call toll free number @ 1800 11 1979, alternatively, you can also apply for the loan through the PM SVANidhi Website.

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.