PM Svanidhi Frequently Asked Questions

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.

The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capitalbase,which they might have consumed during the lockdown. Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.

To facilitate working capital loan up to`10,000 at subsidized rate of interest.

• To incentivize regular repayment of loan and
• To reward digital transactions.

• Initial working capital of up to `10,000/-
• Interest subsidy on timely/ early repayment @ 7%
• Monthly cash-back incentive on digital transactions
• Higher loan eligibility on timely repayment of the first loan.

Street vendors/ hawkers vending in urban areas, as on or before March 24, 2020, 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 and SHG Banks.

The Scheme shall be implemented up to March, 2022.

The Initial working capital loan is upto `10,000/- for a tenure of one year.

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 access this information on the website of PMSVANidhi (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:

• Proof of availing one -time assistance, provided by certain States /UTs, during the period of lockdown.
• Documents of past loan taken from a bank/ NBFC/ MFI for the purpose of vending.
• The membership details with the vendors associations.
• 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.

• Aadhaar Card *
• Voter Identity Card *
• Driving License
• MNREGA Card
• PAN Card.

*Mandatory

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 `400 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:

• On executing 50 eligible transactions: `50;
• On executing the next 50 eligible transactions: Additional `25; and
• On executing the next 100 eligible transactions: Additional `25.

Each transaction > `25 will be counted.

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.

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.

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

You may become a part of Common Interest Group (CIG) formed by ULB or Joint Liability Group (JLG) formed by a lending institution.

You may meet a member of SHG or ALF or CLF or call toll free number.

Yes, you will be issued Provisional Identity Card on approval of loan and permanent CoV/ID will be issued within 30 days.

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.

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
E-Mail: neeraj.kumar3@gov.in
Tel: 011-23062850.