[10000/-] PM SVANidhi Scheme (Street Vendor’s Atmanirbhar Loan)

PM Street Vendor’s Atmanirbhar SVANidhi (SWANIDHI) Scheme 2020-21 [Loan, Registration, How to apply, Eligibility Criteria, Documents, Bank List, Portal, Full form.

The Prime Minister SWANIDHI SCHEME 2020 has been started with the main focus of helping the street vendors who are hit hard due to the outbreak of the pandemic. As per the rules of the scheme, the vendors have to give low rate of interest for the loan.    With the financial help, the street vendors resume their business and help in their livelihood. This will be of immense help for the ones working in small and wages industries, agricultural sector and the like. The central government has urged the urban local bodies to take initiative for quick implementation of the scheme. Let us take a look at the following part of the article.  

PM Street Vendor’s Atmanirbhar SVANidhi Scheme 2020

List of beneficiaries under the scheme

1. Barber Shops
2. Ready-to-eat street food
3. Paan shops (Panwadi)
4. Laundry shops (washerman)
5. Artisan products
6. Vegetable sellers
7. Fruit sellers
8. Tea cart
9. Bread, fritters and egg sellers
10. Books / Stationery Locators
11. Hawkers who sell clothes
12. Shoe bunches

What are the benefits of PM Swanidhi Scheme?

• Items like vegetables, packed food, street food items, fruits, bread, eggs, apparel, artisan products, footwear, books and the like are included
• Government of India is aiming to offer benefits to the ones who are suffering due to the outbreak of COVID-19.
• The government will offer help to different services like barber shops, cobblers, pan shops, laundry and the like.
• At this time of outbreak, it is important to offer financial support so that the services can promote business.

What are the features of Prime Minister’s Self-Employment Scheme?

Main objective of the scheme –

The main purpose of the above said scheme launch is to offer financial help and make the vendors self-reliant. Under the scheme, cheap rate schemes will be given so that they can continue with their business after the lockdown. The central government has launched the scheme with the motive of offering suitable help to the street vendors.   

Rate of interest –

For the Street Loan Vendor Scheme, an interest has been imposed on the principal amount. However, it is linked with the marginal cost instead of the government setting a high rate of interest for the loan amount.

Quick disbursal –

Successful implementation of the scheme will depend on how quick the scheme has been disbursed. Owing to this, the government officials should take care of the loan registration procedure and keep it simple. Making it easy shall help to fulfill the purpose of the loan facility. Therefore, it is beneficial for the borrowers to get the loan. So, customer happiness is the main objective of the scheme launch.  

Credit guarantee –

 In this scheme, loan is given under Mudra scheme. Here, the loan is guaranteed by the Credit Guarantee Trust for Micro and Small Enterprises or CGTMSE. Here, different questions are asked to the borrower in relation the claims of the loan. Also, for the NPAs, the loans are considered to be loss for the banks.

Claim settlement criteria –

To protect the bankers and lower the rate of loss, the CGTMSE should come up with proper claim settlement criteria. For this, there should be a specific time to pay for the claim. Otherwise interest will be added to it.  

Total beneficiaries of the scheme –

 Under this scheme, a total of 50 lakhs vendors will be benefitted.

Amount given under the scheme –

For the scheme, rupees 5000 crores have been sanction. In this relation, the vendors will be encouraged to use different digital forms of payments and they will be offered rewards for the same.  

Among the beneficiaries that will be covered under the scheme, only a fraction of them have access to the commercial banks. However, the main objective of scheme launch is to offer financial assistance and make the vendors self-reliant as the businesses are hugely impacted due to the outbreak of the pandemic. With the help of the loan, the vendors will not have to opt for the loans from the private lenders and get into huge debt trap.  

What are the eligibility criteria for Pradhan Mantri Swanidhi Yojana?

Category of vendors –

Only the street vendors and road side hawkers are eligible to get the benefits of the scheme. In addition, the vegetable, fruit, pan shops and salons are eligible to register for the above said scheme.

Income details –

The street vendors need to have suitable income details to be produced at the time of registration for the scheme. This shall help to justify whether they are eligible to get the scheme benefits or not. 

Identification proof –

Only the Indian citizens are eligible to enjoy the perks of the scheme. The scheme shall help to improve the financial condition of the street vendors in our country.

So, the interested candidates have to wait for the launch of the official link. The candidates should frequently visit the official portal to know about the updates of the scheme. 

Documents required for the scheme

Identification documents –

The vendors need to furnish Aadhaar card, voter ID card, and the like at the time of registration.

Vendor details –

 The street vendors should have documents to justify that they are the street vendors. This is required to be produced at the time of registration for the scheme.

Income certificate –

Based on the details of the income certificate, the higher authorities will determine whether a street vendor is eligible to get the scheme perks or not.

Online registration for the scheme

As this is a newly launched, the online application details are yet to come up. However, the higher authorities are planning to declare new scheme ideas for the benefits of the street vendors. For this, a loan of rupees 10, 000 will be sanctioned that will cover up for almost 50 thousand vendors in India. For more information, it is better to frequently visit the official portal.

FAQ on Pradhan Mantri Swanidhi scheme