The PM SVANidhi program was launched on June 1st, 2020 by the Ministry of Housing and Urban Development. It aims to provide affordable working capital loans to street vendors to help them resume their livelihoods who have been hit by the coronavirus lockdown. Over 2.6 lakh applications have been received, over 64,000 have been sanctioned and over 5,500 have been disbursed.
Prime Minister Modi expressed satisfaction with the use of an end-to-end IT solution through a web portal and mobile app to manage the system to ensure transparency, accountability and speed.
He stressed that the program should not only be viewed from a street vendor lending perspective. PM said the program can be seen as part of a liaison with street vendors for their holistic development and economic recovery: “A step in this direction would be to collect all of their socio-economic details to facilitate necessary policy interventions. This data could also be used by various Indian ministries to give priority assistance to them under various programs to which they are eligible. “
PM SVANidhi scheme:
The center has launched the PM SVANidhi program to provide security-free working capital loans of up to 10,000 yen with a one-year tenure to about 50 street vendors in Lakh to enable them to resume business. Incentives in the form of interest subsidies (at a rate of 7 percent per year) and cashback (up to ₹ 1,200 per year) are intended to encourage good repayment behavior and digital transactions. The interest subsidy is effectively 30 percent of the total interest charge on a loan of ₹ 10,000 at 24 percent annual interest.
PM SVANidhi Mobile App
To make this scheme more accessible, the central government recently launched the mobile application of the PM SVANidhi scheme on July 17th.
The PM SVANidhi Mobile App offers a user-friendly digital interface for financial institutions (LIs) and their sales representatives for the procurement and processing of loan applications.
How do I apply for a street vendor loan?
Those are the pre-loan checks
- Make sure you have all your documents to hand. The requirements can be checked here.
- Make sure your cell phone number is linked to your aadhaar.
- Check your authorization status here.