Q1. What is the Scheme?
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.
Q2. What is the rationale of the Scheme?
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.
Q3. What are the objectives of the Scheme?
(i) To facilitate working capital loan upto
- 10,000 during 1st Loan cycle,
- 20,000 during 2nd Loan cycle
- 50,000 during the 3rd loan cycle at subsidized rate of interest;
(ii) To incentivize regular repayment of loan through interest subsidy @ 7% per annum.
(iii) To reward digital transactions through cashback incentive.
(iv) Higher loan eligibility on timely repayment of the first loan.
Q4. Who is the target beneficiary for the Scheme?
Street vendors/ hawkers vending in urban areas, including the vendors of surrounding peri-urban and rural areas.
Q5. Who is a Street Vendor/hawker?
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.
Q6. Which lending institutions will provide credit?
Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions.
Q7. What is the tenure of the Scheme?
The Scheme shall be available till December 2024. Interest Subsidy claims on all loans will be paid till March 2028.
Q1. What is the amount of initial working capital loan?
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.
Q2. 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. 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.
Q3. How will I know that I am in the surveyed list?
You can access this information on the website of PM SVANidhi (pmsvanidhi.mohua.gov.in).
Q4. 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.
Q5. I stay in the surrounding rural area and vend in the city. Am I eligible for the Scheme? If yes, what is the process? Q6. 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) 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.
Q7. What are the KYC documents required in addition to CoV/ID / LoR?
I. Aadhar Card* II. Voter Identity Card* III. Driving License IV. MNREGA Card V. PAN Card. *Mandatory
Q8. What is the rate and amount of interest subsidy?
Beneficiaries availing loans under the Scheme are eligible to get an Interest Subsidy @7% for all the loans i.e 1st,2nd and 3rd 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.
Q9. Do I need to give any collateral to avail this loan?
No collateral security is required.
Q10. What is the amount of incentive for digital transactions?
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.
Q11. I am not familiar with digital transactions. Will there be any capacity building for doing that?
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.
Q12. Is there any incentive for timely/ early repayment of loan?
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.
Q13. Is there any penalty for repayment of loan before the scheduled date?
There is no penalty for pre-closure of the loan.
Q14. 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 @ 1800 11 1979, alternatively, you can also apply for the loan through the PM SVANidhi Website.
Q15. 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.
Q16. Who should I contact for grievances?
- In case of any grievance, you may call the toll the toll free number or 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: [email protected] Tel: 011-23062850.