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Microcredit facilities for street vendors: Know about PM SVANidhi scheme

Under this scheme, the street vendors can take collateral-free loans with low interest

Street vendor, vegetable, inflation

A street vendor selling vegetables to a woman from his stall. Illustration by Shutterstock

Ayush Mishra New Delhi

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The government’s AtmaNirbhar Nidhi or PM SVANidhi scheme provides affordable working capital loans to street vendors. Lending agencies such as microfinance institutions, non-banking financial companies and self-help groups give credit under this scheme due to their grassroots presence.

Objectives of PM SVANidhi

To give vendors access to affordable working capital loans.

Incentivise regular repayment of loans by provisions like cash-back, higher loans on subsequent demands etc.

Promote digitalisation by rewarding vendors who opt for digital repayments of loans.

Eligibility Criteria Of PM Svanidhi Scheme

Street vendors possessing an identity card or certificate of vending issued by urban local bodies (ULBs).

Street vendors identified in the survey but lacking a certificate of vending or identity card will receive a provisional certificate of vending.

Street vendors omitted from the ULB-led identification survey or those who commenced vending post-survey but possess a letter of recommendation (LoR) from the ULB or town vending committee (TVC).

Street vendors from neighbouring rural, peri-urban, or developing areas vending within ULB geographical limits, provided they hold an LoR from the ULB or TVC.

Documents needed to apply for PM SVANidhi Scheme

Identity proof: Aadhaar Card, Voter ID, etc.

Address proof: Aadhaar Card, utility bills, etc.

Vendor licensing or registration documents (if available).

Bank account details.

Certificate of Vending or Provisional Certificate from the Urban Local Body (ULB).

Visit the PM SVANidhi Portal Access the official PM SVANidhi portal designed for the scheme.

Register and fill an application if you're a new user to register on the portal.

Log in using your credentials and fill the application form with accurate details.

Upload required documents onto the portal.

Review and submit

Keep track of your application status through the portal.

Upon approval, the loan amount will be disbursed to your bank account swiftly.

Utilise and repay loan use the loan for business purposes and adhere to the repayment schedule.

Timely repayment enhances your chances for higher loan amounts in future phases of the scheme.

Documents required to apply for PM SVANidhi

Certificate of vending or ID card issued by ULBs or letter of recommendation from ULB or TVC.

Any one of the following:

Aadhaar card.

Voter Identity card.

Driving licence.


PAN card.
Topics : loan

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First Published: Apr 17 2024 | 3:25 PM IST

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