PM Svanidhi Scheme: Online Application, Benefits & Loan!

Table of Contents:

1. PM SVANidhi Scheme- Introduction

2. Objectives Of PM Svanidhi Portal

3. Pre-Application Steps For PM SVANidhi Application Form

4. PM Svanidhi Yojana Online Registration Eligibility

5. PM Svanidhi Scheme- Benefits

6. PM Svanidhi Loan Application Process

7. FAQs On PM Svanidhi Scheme

1. PM SVANidhi Scheme- Introduction

The PM Svanidhi scheme or Yojana is available to each street seller/hawker working in city areas during or before 24 March 2020. Under this scheme, street vendors are eligible to receive collateral-free loans with low-interest charges for one year. The PM Svanidhi Yojana Online Registration applies to all street vendors working in urban areas on or before 24th March 2020. Certificates and LORs are provided to all vendors who fall within ULB areas.

Any street vendor can also request ULB (urban local body) via a simple PM Svanidhi Yojana Online Registration application on white paper to conduct local enquiry to ascertain the genuineness of the claim as vendor. ULBs will have to dispose of the issue of LoR within 15 days. The street vendors possessing LoR will be issued a certificate of vending or identity card within 30 days, adding that this procurement will help in extending the reach of the scheme to the maximum number of recipients.

As per recent reports, it's been stated that since the commencement of the online submission process of loan applications on the PM SVANidhi portal on July 2, more than 4.45 lakh applications have been received and over 82k have been approved in several states and UTs. PM Svanidhi Loan scheme aims to help over 50 lakh street vendors who had been selling on or before March 24 in urban areas, including those from surrounding peri-urban and rural areas.

2. Objectives Of PM Svanidhi Portal

• To promote and implement working capital loans up to 10,000 Rupees at a subsidised ROI (rate of interest).
• To incentivise a routine repayment of the loan
• To remunerate digital transactions

3. Pre-Application Steps For PM SVANidhi Application Form

3 Simple pre-application steps have been cultivated to help street vendors get ready for the application process of the PM Svanidhi Scheme. Street vendors may apply directly on the PM SVANidhi portal or by a nearby Common Service Centre (CSC).

• Understanding the loan application requirements accurately
• Ensuring your mobile number is linked to your Aadhaar
• Check the eligibility status as per the PM Svanidhi scheme Rules

The detailed guidelines administering the PM Svanidhi scheme is listed on the PM SVANidhi Portal to help local street vendors & other stakeholders such as States, lenders and Urban bodies in ensuring the benefits flow to the beneficiaries of the PM Svanidhi scheme.

4. PM Svanidhi Yojana Online Registration Eligibility

The PM Svanidhi Yojana Online Registration applies to all street vendors working in urban areas on or before 24th March 2020. All eligible vendors are classified as per the following categories:

• Street vendors in possession of Certificate of Vending/Identity Card issued by Urban Local Bodies (ULBs)
• The vendors, who've been recognised in the survey but haven't been allotted a Certificate of Vending/Identity Card; Provisional Certificate of Vending shall be produced for such vendors via an IT-based Platform. ULBs are prompted to issue such vendors the permanent Certificate of Vending and ID Card immediately and positively within a month of applying.
• Street Vendors who are left out of the ULBled identification review or who've begun vending after finishing the survey and have been allotted their Letter of Recommendation (LoR) to that effect by the ULB/Town Vending Committee (TVC)
• Other street vendors of surrounding peri-urban, developments, and rural areas selling in the geographic limits of the ULBs and have been assigned Letter of Recommendation (LoR) to that impact by the ULB/TVC.

5. PM Svanidhi Scheme- Benefits

Some of the most important benefits provided under the PM Svanidhi Scheme for urban street vendors in India are:

1. Promoting Digital Transactions through Street Vendors- The  PM Svanidhi Scheme grants an incentive for adopting digital transactions by street vendors with the cash-back facility. The digital payment competitors such as Paytm, NPCI (for BHIM), GooglePay, AmazonPay, BharatPay, PhonePe, etc., will help onboard the merchants for digital transactions. The onboarded businesspeople would receive incentives in the form of a monthly cashback.
2. Working Capital Loans- Urban street vendors under the PM Svanidhi Scheme can avail of a Working Capital (WC) loan of up to Rs.10,000 with a tenure of 1 year repaid in monthly instalments. There is no collateral is required to avail of the Pm Svanidhi Loan. If there is an early or timely repayment of this loan, the street vendors would be eligible for the next cycle of the WC loan with a heightened limit. There is no charge of prepayment fine for the repayment of the Pm Svanidhi Loan before the scheduled time.
3. Interest Subsidy- The street vendors who avail of Working Capital loan under the Pm Svanidhi Scheme can get an interest subsidy at a 7% rate. The interest subsidy amount is then credited to the borrower’s account every 3 months. This subsidy is available till 31 March 2022. The interest subsidy is available on the 1st and the succeeding enhanced loan up to that date.

6. PM Svanidhi Scheme Loan Application Process

To appeal for a WC loan under the PM Svanidhi Scheme, the street vendors need to advance for an Agent of Micro Finance Institution (MFI) or Banking Correspondent (BC) of their respective area. The ULBs will have a list of these personels. They'll also help out the street vendors to fill up the application form and upload their documents in the Mobile app or the other respective portals for Pm Svanidhi Application Form. The KYC documents needed to appeal for loans are as follows:

• Certificate of Vending or ID card issued by ULBs
• Or a Letter of Recommendation from ULB or TVC
• Any one of the following government documents mandatory for applying at PM Svanidhi Portal-
• Aadhaar card.
• PAN card.
• MNREGA card.
• Driving license.
• Voter Identity card.

Also Read:

1) What Is Stand-Up India Scheme
2) How To Open Pradhan Mantri Jan Aushadhi Kendra
3) Government Schemes For Startups
4) Advantages Of Make In India

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7. FAQs
Q. What is PM SVANidhi scheme?

Ans- The PM Svanidhi scheme or Yojana is available to each street seller/hawker working in city areas during or before 24 March 2020. Under this scheme, street vendors are eligible to receive collateral-free loans with low-interest charges for one year.

Q. Who is eligible for PM SVANidhi Yojana?

Ans- The PM Svanidhi Yojana Online Registration applies to all street vendors working in urban areas on or before 24th March 2020. Certificates and LORs are provided to all vendors who fall within ULB areas.

Q. How do I get LoR for PM SVANidhi?

Ans- A LoR or Letter of Recommendation for PM Svanidhi Portal can be availed through the urban local body via Pm Svanidhi Yojana Online Registration along with the vendor possessing any of the following documents:

• A Proof of availing one-time assistance rendered by certain states during the lockdown period
• All membership information with the vendors’ agreements
• Or any additional documents to officially prove that he is a vendor.

Q. How much is the maximum amount of monthly cash back incentive provided to PM SVANidhi loan borrowers for their digital transactions?

Ans- All beneficiaries would receive incentives with a month-based cashback format ranging between Rs.50/- to Rs.100/- as per the following conditions:

• On accomplishing 50 eligible transactions in a month: Rs.50/-
• On executing the next 50 further eligible transactions in a month: 25 Rupees i.e on reaching 100 eligible transactions, the beneficiary will receive 75 Rupees.
• On executing the next additional 100 or more qualified transactions: 25 Rupees i.e on reaching 200 eligible transactions, the beneficiary will receive 100 Rupees.

In this case, the eligible transactions mean a digital payout or slip with the least value of 25 Rupees. This amount is subject to a Maximum of 1200 Rupees.

Q. What is the SRN number in PM SVANidhi?

Ans- The full form of SRN number in PM SVANidhi Portal is- Survey Reference Number.