PM SVANidhi Scheme: Know all details about this govt scheme

PM SVANidhi or PM Street Vendor’s AtmaNirbhar Nidhi is a special micro-credit facility for street vendors. This scheme was launched on June 1, 2020. Through this scheme, vendors can apply for a collateral free loan. In addition, applicants will get a subsidy on interest. The scheme is valid till March 31, 2022.

Covid-19 pandemic and restrictions had a terrible outcome on street vendors. Many people lost their source of income. The main objective behind the PM SVANidhi scheme is to provide financial help to the street vendors so that they can restart their businesses and restore pre-pandemic normalcy. Under this scheme now street vendors can get up to Rs 20,000 working capital loans. The interest subsidy will be valid till March 31, 2022.

Benefits

Street vendors will get working capital loan up to Rs 20,000 under PM SVANidhi scheme. On timely or early repayment, the vendors will be eligible for another working capital loan with an enhanced limit.

Interest rates

The interest rates will vary lender to lender. In case of banks, the rates will be as per their prevailing rates of interest.

Tenure

The tenure of working capital loan under PM SVANidhi is one year. One can repay it in monthly instalments with 12 EMI options. There is no pre-payment charge.

Interest subsidy

The beneficiaries will get an interest subsidy at 7%. The interest subsidy amount will be credited into the borrower’s account quarterly.

Eligibility criteria

All street vendors active in vending on or before March 24, 2020 are eligible to apply for working capital loans under this scheme.

How to Apply

Street vendor’s can apply online for this loan through PM Svanidhi website at pmsvanidhi.mohua.gov.in.