SVANidhi Yojana Benefits, Features, Online Registration, Objective
What’s the SVANidhi PM Scheme?
For the street vendors, Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi scheme or PM SVANidhi was introduced on June 1, 2020, by the Central Government to help the street vendors resume their livelihood activities impacted by COVID-19.
The Scheme’s Goal
The goal of the scheme is to promote working capital loans of up to Rs. 10,000 at a subsidized interest rate, to encourage periodic repayment of loans and to reward digital transactions.
The scheme intends to provide benefits on or before March 24, 2020, to street vendors or hawkers in urban, pre-urban, and rural areas.
The scheme’s characteristics
1- Up to Rs. 10,000 initial working capital.
2- Interest subsidy at the rate of 7% on timely or early repayment.
3- Monthly cash-back rewards on digital purchases.
4- Higher loan eligibility for repayment of the first loan on time.
SVANidhi Yojana: Purpose
The Modi government had announced a country-wide lockdown from March 25 to May 31 to protect people from the Coronavirus epidemic infection. Therefore, the street hawkers and sellers of goods on the job were unable to work for their livelihood.
They had to face immense difficulties because of this. The government, seeing their problems, began the scheme on June 1. The aim of the scheme was to provide street vendors with loans to resume their work.
SVANidhi Yojana Registration: Process to Apply
- First, the applicants have to visit the scheme’s official website.
- You will see the option of ‘Planning to Apply for Loans’ on this home page. After that, you have to click on the View More button to read Section 3 of the Loan Application Planning carefully.
- After that, the next page will open in front of you, where you need to click on the View / Download Form option. After that, in front of you, a PDF of the Swanidhi scheme form will open.
- A PDF of this scheme can be downloaded. You will have to fill out all the requested information in this form after downloading the application form. You will have to attach all your required documents.
- The applicant will need to visit the institution to apply for the application.
PM SVANidhi scheme features
- Over 50 lakh street vendors will benefit from the system.
- Working capital loans of up to Rs 10,000 repayable in monthly installments will be provided, to restore their affected livelihoods due to Covid-19.
- An interest subsidy of 7 percent pa will be credited to beneficiaries via DBT on a six-monthly basis on a timely/early repayment basis of the loan.
- Monthly cashback incentive on receipt/payment for digital transactions.
- Mobile App and Application Process-Based Web Portal.
- No collateral security for the loan is required.
PM SVANidhi Scheme Objectives
- To provide loans for working capital of up to Rs 10,000 at a subsidized interest rate.
- Incentivize the periodic repayment of a loan.
- To reward digital transactions, too.
The Atmanirbhar Nidhi by Pradhan Mantri for Street Vendor is a unique micro-credit facility scheme to provide affordable loans.
The system allowed street vendors to resume their adversely affected livelihoods due to the lockdown of COVID-19. The scheme was launched in line with the announcement made last month by Finance Minister Nirmala Sitharaman.
For the first time in India’s history, street vendors from peri-urban or rural areas have become recipients of an urban livelihood program.
The rationale behind the scheme to help the street vendors by providing them financial assistance. As we know, street vendors typically work with a small capital base that might have been consumed during the period of lockdown. So, to resume their livelihoods, the scheme will be helpful.