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Everything About Prime Minister Street Vendor’s AtmaNirbhar Nidhi | Tata Capital

Introduction

Prime Minister Vendor’s AtmaNirbhar Nidhi is a scheme launched by the Ministry of Housing and Urban Affairs to empower street vendors and their families. This scheme focuses on collateral-free working capital and affordable loans in tranches starting from Rs 10,000 for a term of one year. It also lays emphasis on the holistic socio-economic development of street vendors and their families.

The government gives incentives to street vendors who adopt digital transactions by offering them cashbacks. Approximately 50 lakh street vendors are expected to benefit from this scheme. A loan amount of Rs. 8,100 crores has been sanctioned for this PM SVANidhi scheme. This loan amount would help the street vendors expand their business, making them”atma nirbhar” or self-reliant.

PM SVANidhi Scheme So Far

PM Street Vendor’s AtmaNirbhar (SVA Nidhi) Scheme was launched in June 2020. The main objective of this scheme was to uplift the street vendors and help them recover their losses due to the covid pandemic.

This scheme has been extended till 2024 December. In a recent report, it was revealed that 30,20,566 first PM SVANidhi loans have been disbursed and 2,99,179 second PM SVANidhi loans have been disbursed to date. The PM SVANidhi loans are in tranches where Rs. 10,000 is given in the first tranche, Rs. 20,000 in the second tranche and Rs. 50,000 in the third tranche. With an 88% repayment rate, Rs. 30.24 lakh crores have been disbursed so far.

The street vendors have completed over 13.5 crore digital transactions, and cashback of Rs. 10 crores have been given. As interest subsidy, Rs. 51 crores have been paid.

Segmentation of PM SVANidhi Scheme

Here is a detailed illustration of the cashback and interest subsidy for a loan of Rs 10,000.

  Month   Principal (in ₹)   Interest    @24% (in ₹)     EMI (in ₹)  Interest subsidy @7% (in ₹)  Cashback    ₹Incentive (in ₹)  Total Benefit (in ₹)
174620094658100158
2  76118594654100154
377617094650100150
479115494546100148
580713994642100142
682312294536100136
784010694532100132
88568994527100127
98747294622100122
108915594617100117
119093794612100112
12927199466100106
Total  10,0011,34811,3494021,2001,602
% w.r.t interest   30% of interest88% of interest 

Eligibility for PM SVANidhi Scheme

This scheme is available for all the vendors in urban areas as on or before 24th March 2020. These vendors are identified based on the following criteria:

  • Street vendors with an ID card or certificate of vending issued by Urban Local Bodies (ULBs).
  • Vendors who have not received their Vending/ID card but have been identified by the survey. In this case, a Provisional Certificate of Vending is given to the street vendor.
  • In case any street vendor was left out of the ULB’s identification survey or has started after the completion of the survey but has received a Letter of Recommendation by ULB or Town Vending Committee (TVC).
  • Street vendors who have been issued a Letter of Recommendation falling in the geographical limits of ULB like surrounding rural or peri-urban areas.

Application of loan under PM Street Vendor’s AtmaNirbhar Nidhi scheme

To apply for a loan the street vendor should approach a Banking Correspondent or Agent of Micro Finance Institution in their area. They help street vendors to fill out the application form and upload documents in the PM SVANidhi portal or mobile app. One can also apply for the PM Street Vendor Atma Nirbhar Nidhi scheme online.

KYC documents required:

  • Certificate of Vending or ID card issued by ULB or letter of recommendation from ULB or TVC.
  • Any one of the following:
    • Aadhaar card
    • PAN card
    • Voter ID
    • Driving licence
    • MNREGA card

To apply for PM Street Vendor Atma Nirbhar Nidhi scheme online:

  1. Visit the official PMSVANidhi website
  2. Click on ‘Apply loan 10K’, which can easily be viewed on the homepage of the website.
  3. Enter the mobile number and the Captcha and click on get OTP.
  4. Enter the OTP received on your mobile and click on verify.
  5. Select the vendor category. It is mentioned there that Category A vendors will have to provide their survey reference number (SRN). They will have to upload their vending certificate/ID card. The Category C and Category D vendors will have to upload their Letter of Recommendation (LoR).
  6. Once the required documents are uploaded, you will be required to enter your Aadhaar number and verify it with the OTP received on the registered mobile number. Click on ‘SUBMIT’.
  7. On the next page will be the loan application form. All the details like name, address, type of vendor etc. need to be filled in this form.
  8. After filling out the form, it needs to be submitted. After the submission, an application number will be given to the applicant for future reference.

Conclusion

The government launched this scheme to help and upraise the street vendors who earn with a very small working capital. More than 35 lakh street vendors have benefitted from the scheme so far.

Tata Capital’s unique business loans align with the government’s vision of making India AtmaNirbhar.

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