PM Svanidhi Scheme, Eligibility, Objectives, Features, Benefits

PM Svanidhi Scheme was launched by the Ministry of Housing and Urban Affairs on June 01,2024, to provide affordable working capital loans to street vendors to resume their livelihoods that have been adversely affected due to COVID-19 lockdown. The scheme is implemented by the Small Industries Development Bank of India( SIDBI).

PM Svanidhi Scheme Objectives

Following are the objectives of PM Svanidhi Scheme: 

1. To provide vendors with affordable working capital loans to be able to overcome COVID-19 losses. 
2. To ensure regular loan repayments by provisions like cashback, higher loans etc. 
3. To promote digital transactions by rewarding the vendors who opt for digital payments for loans. 

PM Svanidhi Scheme Features

PM SVANidhi Scheme has the following features- 

1. It is a micro-credit facility that provides street vendors with a collateral-free loan of Rs 10,000 with low rates of interest (below 12%) for a period of one year, aiding the vendors in getting back on their feet financially.
2. The duration of the scheme initially was until March 2022. It has been extended till December 2024, with a focus on enhanced collateral-free affordable loan corpus, increased adoption of digital transactions and holistic socio-economic development of the Street Vendors and their families. 
3. Vendors who opted for digital loan payment options to be rewarded with cashback incentives. 
4. For early repayment of loans vendors were to be provided with 7% subsidy. 
5. No collateral security has to be paid to access the loan. 

PM Svanidhi Loan Eligibility Criteria 

To apply for PM SVANidhi Loan one must fulfil the following eligibility criteria: 

• All vendors who have been vending from or before (March 24, 2020) and with a certificate of vending can avail the loan.
• As per the Street Vendors Act 2014, the Town Vending Committees (which comprises the local authorities and vendors from an area) issue a certificate of vending after a survey has been conducted of all the vendors.

PM SVANidhi Scheme Benefits

• Vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
• On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
• there will be no penalty on early repayment of the loan.
• The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
• The vendors can avail the facility of escalation of the credit limit on timely/ early repayment of loan.

PM SVANidhi FAQs

Q1. What is the PM SVANidhi scheme?

Ans. PM SVANidhi scheme provides affordable loans to street vendors to support their businesses post-COVID-19.

Q2. What is the SVANidhi Yojana for UPSC?

Ans. SVANidhi Yojana aims to offer collateral-free loans to street vendors, relevant for UPSC under schemes promoting financial inclusion.

Q3. When was PM SVANidhi started?

Ans. PM SVANidhi was launched on June 1, 2020.

Q4. Which Ministry administers the PM SVANidhi scheme?

Ans. The Ministry of Housing and Urban Affairs administers the PM SVANidhi scheme.

Q5. What is the objective of PM SVANidhi?

Ans. The objective of PM SVANidhi is to empower street vendors by providing working capital loans and promoting digital transactions.

Q6. Who is the target of PM SVANidhi Yojana?

Ans. The target beneficiaries of PM SVANidhi Yojana are street vendors engaged in urban and peri-urban areas.

Q7. What is the importance of Pradhan Mantri Jan Dhan Yojana scheme?

Ans. Pradhan Mantri Jan Dhan Yojana is important for promoting financial inclusion by providing access to banking services and financial literacy.