PM Svanidhi Yojana apply online | How to Apply

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PM Street Vendor’s Atmanirbhar Nidhi (PM Svanidhi) Scheme Apply Online Form, Beneficiary List / Survey Status, Guidelines & Lenders List.

Atmanirbhar Nidhi (PM Svanidhi) Pradhan Mantri Street Vendor’s Scheme 2020 Online Application / Registration Form, Street Vendor Survey Status / Recipient List, Lenders List, Pre-Application Steps, Eligibility, Implementation, Recipient List-How to apply online for Rs. 10,000 in PM Svanidhi yojana. Central Government unveiled a new Atmanirbhar Nidhi (PM Svanidhi) scheme for the Pradhan Mantri Street Vendor. Under this PM, the Union govt Svanidhi Yojana. Provides up to Rs. 10,000 short-term loans to rehdi / Patri valas (phereewala).

Online application/registration form PM Svanidhi Scheme 2020

To provide initial up to Rs. 10,000 working capital loan, govt. PM Street Vendor Atmanirbhar Nidhi (PM Svanidhi) Scheme 2020 has been launched. On 29 June 2020, the application of the online process for street vendor self-reliant scheme was specified now. Below is the full application process by filling out the online application/registration form at PM Svanidhi:-

Below is the complete process of how to apply online for PM Svanidhi:-

  • Visit the official website:-Firstly visit the official website at http://pmsvanidhi.mohua.gov.in/
  • Apply for a loan online:-At the homepage, click at the “Apply for Loan” tab or make “Login as applicant” as shown in the figure below or directly click http://pmsvanidhi.mohua.gov.in/Login
  • Login using mobile number:- In the new login window, street vendors can apply online for PM Svanidhi loan by making login using mobile number. Enter the mobile no. and click at the “Request OTP” button to get a one-time password on that mobile phone. Afterward, enter received OTP and click at “Verify OTP” button
  • Check Vendor Category
  • Select the appropriate vendor category to proceed further
  • Registration using aadhar number:- Afterwards, street vendors can make registration using aadhar verification as shown below. Upon entering aadhaar number and clicking at the “Verify” button, you will get an OTP on the mobile number which is registered in aadhar card.
  • Fill the online application form:- Accordingly, on verification of Aadhar OTP, the PM Svanidhi online application form will appear.

Download PDF to PM Svanidhi Standard Loan Application Form

Therefore a new window for PM Svanidhi Pre-Application will open. The direct link to the Atmanirbhar Nidhi Scheme pre-application window for opening PM Street Vendor is http:/pmsvanidhi.mohua.gov.in / Home / PreApplication. Click the “View / Download Form” button at the new tab. The PM Svanidhi Common Loan Application Form will then appear as illustrated below:-

Test your Survey Status / Survey of Street Vendors

People may now verify their survey status whether or not they were included in the survey conducted by Urban Local Authorities(ULB)/Municipalities and save your Survey Reference Number(SRN) for future reference. Website Click Here

Beneficiaries of PM Svanidhi Scheme

Around 50 lakh street vendors will benefit from the PM Street Vendor Atmanirbhar (PM SVANidhi) scheme according to the initial data collected from state governments. The Core Govt. The credit flow of Rs . 5,000 crore will extend to that sector. In addition, those street vendors who make use of digital payments and prompt repayments would be encouraged through monetary rewards.

PM Svanidhi Scheme Guidelines

The detailed guidelines of the PM Svanidhi Scheme can be download in PDF format in English and Hindi using the below links.
Hindi Guidelines | English Guidelines

Frequently Asked Questions:- 

1. What is PM Street Vendor’s Atmanirbhar Nidhi Yojana?
This is a Central Sector Scheme to facilitate street vendors to access affordable working capital loan for resuming their livelihoods activities, after easing of lockdown. Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi is a special micro-credit facility scheme for providing affordable loans to street vendors. As livelihoods of these daily wage earners have been impacted seriously due to COVID-19 lockdown, govt. has started this scheme. The scheme will provide working capital loans to enable street vendors to resume their life. In this scheme, street vendors from peri-urban or rural areas would be the beneficiaries.

2. Who are Street Vendors/Hawkers?
Any person who works in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the general public. The street vendors may offer these services in the street, footpath, pavement, etc. from either a temporary built-up structure or by moving from one place to another. The goods that are supplied by them are vegetables, fruits, ready-to-eat street food, tea, pakodas, bread, eggs, textiles, artisan products, books/ stationery among others. The services provided by street vendors include barbershops, cobblers, pan shops, laundry services, etc.

3. What is PM SVANidhi Scheme Objectives?
To provide working capital loans up to Rs 10,000 at a subsidized rate of interest. The govt. will incentivize regular repayment of the loan and will reward digital transactions. The main objectives are:-
(i) To facilitate working capital loan up to 10,000 at a subsidized rate of interest;
(ii) To incentivize regular repayment of the loan; and
(iii) To reward digital transactions.

4. What are the salient features of the PM Svanidhi Yojana?
(i) Initial working capital of up to Rs. 10,000/-
(ii) Interest subsidy on timely/ early repayment @ 7%
(iii) Monthly cash-back incentive on digital transactions
(iv) Higher loan eligibility on timely repayment of the first loan.

5. Who are Target beneficiaries of PM SVANidhi Yojana?
The PM SVANidhi scheme targets to benefit over 50 lakh street vendors who had been vending on or before 24 March 2020 in urban areas. The street vendors belonging to the surrounding peri-urban or rural areas are also included under the urban livelihoods program for the 1st time.

6. What is the Duration & Interest Subsidy on Working Capital Loan?
In monthly installments, the PM SVANidhi loan is going to be repayable in a 1-year duration. There is an interest subsidy of 7% on timely/early repayment. On prompt repayment, the central govt. will provide interest subvention @ 7% p.a in the bank accounts of the beneficiaries through DBT mode on 6 months basis. Moreover, on digital transactions, there would be incentives for monthly cash-back. The scheme tenure for implementation is up to March 2022.

7. Which lending institutions will provide credit under the PM SVANidhi Scheme?
For the successful implementation of the scheme, the Urban Local Bodies will play a significant role. The lending institutions under the scheme are Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies (NBFCs), Micro Finance institutions, and Self Help Group banks.

8. What is the rationale of the PM Svanidhi Scheme?
The COVID-19 pandemic and consequent lock-down have adversely impacted the livelihoods of street vendors. They usually work with a small capital base, which they might have consumed during the lockdown. Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.

9. What is the amount of initial working capital loan?
The Initial working capital loan is up to Rs. 10,000/- for a tenure of one year.

10. I have an Identity Card /Certificate of Vending. How can I apply for the loan?
You can approach a Banking Correspondent (BC)/ Agent of Micro Finance Institution (MFI) in your area (ULBs will have the list of these persons). They will help you in filling up the application and upload the documents in a Mobile App/ Portal.

11. How will I know that I am in the surveyed list?
You can access this information on the website of the Ministry of Housing and Urban Affairs.

12. My name is in the list of surveyed vendors, but I do not have either Identity Card or Certificate of Vending? Can I avail of the loan facility? If yes, what is the process?
Yes, you can still avail of the Scheme benefits. A Provisional Certificate of Vending would be issued to vendors through an IT-based Platform. The BC/ Agent will help you in filling up the application and upload the documents in a mobile App/ Portal.

13. I stay in the surrounding rural area and vend in the city. Am I eligible for the Scheme? If yes, what is the process?
OR
14. I am a vendor from the city but not included in the survey. How can I avail the benefits of the Scheme?
The Scheme is available to vendors of surrounding development/ peri-urban/ rural areas vending in the geographical limits of the cities/ towns and those left out of the survey. If you belong to this category you have to produce one of the following documents to obtain the Letter of Recommendation from ULB/TVC:
(i) Documents of past loan taken from a bank/ NBFC/ MFI for the purpose of vending; or
(ii) If you are a member of street vendors’ association like NASVI, NHF, SEWA, etc., your membership details; or
(iii) Any other documents to prove that you are a vendor; You can also request ULB through a simple application on white paper to conduct a local inquiry to ascertain the genuineness of your claim. After receipt of LoR, you may approach BC/ Agent to apply for the loan.

15. What are the KYC documents required in addition to CoV/ ID / LoR?
You may carry any one of the following documents for KYC purpose:
(i) Aadhaar Card,
(ii) Voter’s Identity Card,
(iii) Driving Licence,
(iv) MNREGA Card,
(v) PAN Card.

16. What is the rate and amount of interest subsidy?
The rate of interest subsidy 7%. The interest subsidy amount will be credited directly to your account on a quarterly basis. In the case of early payment, the admissible amount of subsidy will be credited in one go. For a loan of `10,000, if you pay all the 12 EMIs in time, you will get approximately Rs. 400 as an interest subsidy amount.

17. Do I need to give any collateral to avail of this loan?
No collateral security is required.

18. What is the amount of incentive for digital transactions?
The on-boarded vendors would be provided with a monthly cashback in the range of Rs. 50 to Rs. 100 as per the following criteria:
(i) On executing 50 eligible transactions: 50;
(ii) On executing the next 50 eligible transactions: Additional 25; and
(iii) On executing the next 100 eligible transactions: Additional 25.
Each transaction > 25 will be counted.

19. Who should I contact for grievances?
In case of any grievance, you may contact the following officer in the Ministry:
Director (NULM), Room no.334-C, Ministry of Housing & Urban Affairs, Nirman Bhawan, Maulana Azad Road, New Delhi – 110011. The concerned official e-Mail ID is neeraj.kumar3@gov.in, Tel: 011-23062850.

Check complete FAQ’s – http://pmsvanidhi.mohua.gov.in/Content/PDFDocs/FAQs.pdf

Commercial Banks Will Face Difficulty in Disbursing Loans

Central govt’s recent announcement to offer Rs. 10,000 loans to phereevaala under the PM Svanidhi scheme will put commercial banks in trouble. It is because commercial banks do not have any past experience in disbursing such small size loans in urban clusters. The new PM Street Vendor Atmanirbhar Scheme 2020 proposes a bank credit facility for initial working capital up to Rs. 10,000 for each vendor.

Difficulty in Credit Appraisal for Street Vendors Without Credit History

How to do credit evaluation for an individual without any credit background is of major concern. According to some of the bankers, the model of self-help group which is followed to extend loans in rural areas could be followed, given below:-

A) In this model, a group comprising women borrowers mostly is formed with 10-12 individuals of a neighborhood in a rural area.
B) Here individuals of the group can take responsibility for timely repayment by other members. These groups are required to show savings habit, for at least 6 months, before lending can start.

Problems in Self Help Group (SHG) Model for PM Svanidhi Yojana:

The main problem in the SHG model for PM Street Vendor Atmanirbhar Nidhi (PM SVANidhi) Yojana is that the formation of such a group in urban areas may not be feasible. Urban people are apprehensive about being a guarantor of another borrower within the group. In addition, there’s no time to build savings habit as the vendor immediately requires the loan.

Key to Implement PM Street Vendor Atmanirbhar Nidhi (PM SVANidhi) Yojana

Interest Rate – There is a need to place an interest cap for such loans which should be linked with the cost of funds. Ideally, it should be linked to the MCLR [marginal cost of funds based lending rate] rather than the government prescribing a particular rate.

Speedy Disbursal – The success of this scheme depends on the speed at which the loan is delivered. For this purpose, govt. will have to keep documentation short and simple. It should be a single page document as the purpose of the loan is speed and convenience at which it is delivered. If the borrower runs around for a week, then they will lose interest. So, customer delight is one of the key implementation strategies.

Credit Guarantee – Loans under this scheme are likely to be under the Mudra scheme. Mudra loans are guaranteed by Credit Guarantee Trust for Micro And Small Enterprises (CGTMSE). It is not easy to get claims for CGTMSE in case there is a default. Many questions are asked to settle claims as well as the loan appraisal report is seen. So in the case of NPAs, these loans would incur losses for bankers.

Claim Settlement Criteria – To prevent bankers from loss, CGTMSE should clearly state the claim settlement criteria upfront. A deadline must be specified within which a claim should be paid and if not, then interest should accrue.

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