Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Yojana

Introduction

Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Yojana is a government
scheme launched by the Ministry of Housing and Urban Affairs in June 2020 to support street
vendors who have been affected by the COVID-19 pandemic. The aim of the scheme is to
provide affordable working capital loans to street vendors to resume their livelihoods that have
been impacted due to the pandemic.

Under the PM SVANidhi scheme, street vendors can avail of loans up to Rs. 10,000, repayable
in monthly installments within a year. The scheme provides an interest subsidy of 7% to the
vendors on timely or early repayment of loans, which would reduce the effective rate of interest
to the borrower. Street vendors can also avail a cashback of Rs. 1,200 per annum on undertaking
prescribed digital transactions. The PM SVANidhi scheme also aims to facilitate the
formalization of street vendors' livelihoods by issuing identity cards to them, which would help
them to access various social security schemes and benefit from other government initiatives.
This scheme is expected to provide financial relief to the street vendors who have been affected
by the pandemic and help them to revive their livelihoods.

Eligibility Criteria

1. Street vendors belonging to urban or peri-urban areas can apply for the PM SVANidhi
Yojana.

2. Street vendors who were vending before or on March 24, 2020, are eligible for the
scheme.

3. Street vendors who have their own vending carts or have been issued vending
certificates by the urban local bodies (ULBs) can apply.

4. The applicant must be above the age of 18 years.

5. The vendor should not have availed any loan under any other government scheme.

Terms & Conditions

1. The loan amount can range from a minimum of Rs. 10,000 to a maximum of Rs. 20,000.

2. The loan must be repaid in monthly installments within a year.

3. There is no collateral required to avail of the loan under the PM SVANidhi scheme.
 4. The interest subsidy of 7% is provided to the vendors on timely repayment of loans.

5. Vendors can avail a cashback of Rs. 1,200 per annum on undertaking prescribed digital
transactions.

6. The scheme covers all urban and peri-urban areas in the country.

How to Apply

1. Interested vendors can apply for the PM SVANidhi Yojana through an online portal
developed by the Ministry of Housing and Urban Affairs.

2. The portal can be accessed through the official website of the Ministry.

3. Vendors can also apply for the scheme through the Common Service Centers (CSCs)
or ULBs.

Where to Apply

1. Interested vendors can apply for the PM SVANidhi scheme through the online portal
developed by the Ministry of Housing and Urban Affairs.

2. Vendors can also apply through the Common Service Centers (CSCs) or the Urban
Local Bodies (ULBs).

Online/Offline Channels

1. The PM SVANidhi scheme can be applied through online channels via the online portal
developed by the Ministry of Housing and Urban Affairs.

2. Vendors can also apply through offline channels by visiting the Common Service
Centers (CSCs) or the Urban Local Bodies (ULBs) in their respective cities.

Success Rate

The PM SVANidhi scheme has been successful in providing financial assistance to street
vendors across the country, but it has also faced some challenges.

1. As of March 2022, over 58 lakh applications have been received under the PM
SVANidhi scheme.

2. More than 56 lakh loans amounting to Rs. 5,600 crores have been disbursed to street
vendors under the scheme.
 3. The scheme has achieved a repayment rate of over 95%.

4. The scheme has been implemented in 35 States/UTs and covers more than 700 cities.

5. The scheme has provided a means of livelihood to street vendors during the pandemic.

Challenges Faced

1. Limited Awareness: One of the main challenges faced by the PM SVANidhi scheme is
the limited awareness among the street vendors. Many street vendors are not aware of
the scheme, its benefits, and how to apply for it.

2. Identification of Street Vendors: Another challenge is the identification of street vendors

eligible for the scheme. The street vendors must have been vending on or before March
24, 2020, to be eligible for the scheme. Identifying such street vendors and providing
them with the necessary documents is a significant challenge.

3. Access to Digital Infrastructure: To avail of the PM SVANidhi scheme, street vendors

must have access to digital infrastructure such as smartphones or computers. However,
many street vendors lack such resources, making it challenging to apply for the scheme.

4. Implementation Issues: There have been some implementation issues related to the
disbursal of loans under the scheme. The banks or lending institutions responsible for
disbursing the loans face difficulties in verifying the identity and eligibility of the street
vendors.

5. Timely Disbursal of Loans: Timely disbursal of loans is another challenge faced by the
PM SVANidhi scheme. The street vendors require quick access to the loans to restart
their businesses, but due to the verification and documentation process, there is a delay
in the disbursal of loans.

Conclusion

The PM SVANidhi scheme has been successful in providing financial assistance to street
vendors across the country. The government is taking measures to address the challenges and
improve the implementation of the scheme. The scheme has provided a ray of hope for street
vendors during these tough times, and its success rate is expected to increase in the coming
years. Overall, the PM SVANidhi Yojana is a great initiative by the Indian Government to
provide financial support to street vendors who have been impacted by the COVID-19
pandemic. It is an excellent opportunity for street vendors to revive their livelihoods and avail
of financial assistance to expand their businesses.