Ministry of Housing and Urban Affairs (MoHUA) has recently launched PM Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi), a special Micro Credit Facility Scheme for providing affordable loan to street vendors to resume their livelihoods that have been adversely effected due to COVID-19 lockdown. This product is categorised under Priority Sector Lending under MSME.
Street Vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the doorstep of the city dwellers. They are known as vendors, hawkers, thelewala, rehriwala, theliphadwala etc. in different areas/ contexts. They usually work with a small capital base and might have consumed the same during the lockdown. Therefore, there is an urgent need to provide credit for working capital to street vendors to resume their business.
The key features of the product “PM SVANidhi Loan” are as follows-
i: A Term Loan of Rs.10,000 for working capital purpose.
ii: The rate of interest is 15% per annum on diminishing return, fixed during the tenure.
iii: Tenure: 12 Months.
i: Subsidy: Interest subsidy @7%.
ii: Cashback: Upto maximum limit of Rs. 1200 on digital transactions.
**Note: The benefits of Interest Subsidy & Cashback will be provided to the eligible Street Vendors by the Government of India, based on certain criteria.
i: Processing Fee: Not Any.
ii: No prepayment charges.
iii: NIL Security required.
a) The Scheme is available to all street vendors engaged in vending in urban areas as on or before March 24, 2020. The eligible vendors will be identified as per following criteria:
(i) Street Vendors in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs);
(ii) The vendors, who have been identified in the survey but have not been issued Certificate of Vending / Identity Card;
Provisional Certificate of Vending would be generated for such vendors through an IT based Platform. ULBs are encouraged to issue such vendors the permanent Certificate of Vending and Identification Card immediately and positively within a period of one month.
(iii) Street Vendors, left out of the ULB led identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC);
(iv) The vendors of surrounding development/peri-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC.
b) No Co-Borrower is required, the Applicant can avail loan in his/her individual capacity.
c) Age Limitation For Applicant- Minimum Age- 18 Years (at the time of entry)
Maximum Age- 60 Years (at the time of closure of loan)
d) The scheme will incentivize digital transactions by vendors through cashback facility. These Cashback incentives shall be available only to a maximum limit of Rs.1200 based on certain criteria.
e) Existing JLG/MBIL customers are eligible subject to overall indebtedness limit including the proposed loan is Rs. 1,25,000 or below.
f) Clients who have availed loans from any other financial institutions for the same purpose are not eligible.
g) Street Vendors must have a UPI lD before disbursal of the loan amount and the UPI ID information along with the Loan Application Form (LAF) information is submitted to the PM SVANidhi Portal.
h) The Street Vendors will be eligible for benefits of interest subsidy (at the rate of 7%) on the enhanced limit for the scheme period i.e. March 31, 2022.
i) Category of Vending Activities (to be selected in LAF) are provided below:
1: Fast food and food items
2: Fruits and Vegetables
3: Home Decor & Handicrafts
4: Kitchen items
5: Electrical and Electronic Goods
6: Cloth and Handloom Items
7: Flower and Pooja Items
8: Plastic Items
9: Footwear and Leathers Products
10: Beauty and Fashion Accessories
12: Others (Please Specify)