PM SVANidhi scheme: The government will revamp the ‘Pradhan Mantri Svanidhi Yojana’ for street vendors in the budget. The government has announced to increase the loan limit from banks and UPI linked credit cards will be increased to Rs 30,000.
Union Finance Minister Nirmala Sitharaman said on Saturday that the ‘Pradhan Mantri Svanidhi Yojana’ will be revamped for street vendors. Under this, the loan limit from banks and UPI linked credit cards will be increased to Rs 30,000.
Presenting the eighth consecutive budget in the Lok Sabha, Sitharaman said that this scheme has benefited more than 68 lakh street vendors through relief from high-interest loans of the informal sector. Based on this success, this scheme will be revamped and the loan limit from banks and UPI linked credit cards will be increased to Rs 30,000.
PM Street Vendor Atmanirbhar Nidhi (PM-SVANidhi) is a special facility to provide affordable loans to street vendors. The interest rate on this card is also kept very low. The scheme was launched by the Ministry of Housing and Urban Affairs on July 2, 2020 during the COVID-19 pandemic.
PM Swanidhi Scheme started during COVID lockdown
This scheme was launched to help street vendors and small shopkeepers who suffered losses due to the COVID-19 lockdown to restart their business. Those running roadside carts or stalls, selling fruits, vegetables, providing laundry services, running salons and paan shops can take loans under PM SVANidhi. Additional benefits are also available on repaying the loan on time.
No guarantee for loan
No guarantee is required for this loan. The loan has to be repaid in monthly installments. An interest subsidy of 7% per annum is also given on regular repayment of the loan received under PM Swanidhi Scheme. The amount of interest subsidy will come directly to the beneficiary’s account on a quarterly basis. On repayment of the loan before time, the subsidy will come to the account in one go. Also, cashback of up to Rs 1200 per annum is also available for those who make digital transactions in the prescribed manner.
Who will give loan?
Under the scheme, scheduled commercial banks, regional rural banks, small finance banks, cooperative banks, non-banking finance companies, micro finance institutions and SHG banks provide loans. The implementation partner for the scheme is Small Industries Development Bank of India.
Documents required for loan
Beneficiaries can provide Aadhaar card and voter ID card as mandatory KYC documents. Apart from this, driving license, MNREGA card, PAN card are also included in KYC documents. This loan can also be taken through Common Service Centers (CSCs) spread across the country.
Process and conditions for applying for PM Swanidhi
To apply for a loan under PM Swanidhi, the vendor’s mobile number must be linked to Aadhaar.
To avail the benefits of PM Swanidhi scheme, one can apply with the help of pmsvanidhi.mohua.org.in or mobile app.