The PM Svanidhi Yojana (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) is a government scheme designed to support street vendors who have been affected by the economic fallout of the COVID-19 pandemic. Launched on June 1, 2020, this scheme aims to provide working capital loans of up to Rs. 10,000 to help street vendors re-establish their businesses, resume their livelihoods, and improve their overall standard of living. The scheme primarily targets vendors operating in urban areas, including those who do not possess a formal identification document. Here’s a detailed breakdown of the scheme, its features, benefits, and eligibility criteria:
Key Features of PM Svanidhi Yojana:
1. Loan Amount:
Under this scheme, street vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly installments.
2. Interest Rate:
The interest rate on these loans is subsidised and ranges from 7% to 8% per annum.
3. Rebate on Timely Repayment:
Borrowers who repay their loans on time are eligible to receive a full interest subsidy.
4. Digital Payment Incentives:
To promote digital transactions, beneficiaries are encouraged to repay their loans through digital means, for which they can avail of cashback incentives.
5. Insurance Coverage:
Under the PM Svanidhi Yojana, street vendors who participate in the scheme are covered for accidental and natural death, providing an added layer of security.
6. Facilitation of Working Capital:
The loans under this scheme can be used to procure raw materials, goods, or tools to restart or expand the vendor’s business.
Benefits of PM Svanidhi Yojana:
-
Financial Inclusion:
The scheme promotes financial inclusion by extending credit facilities to a marginalized section of society. -
Economic Stability:
By providing working capital, the scheme helps street vendors stabilize their businesses and generate greater income. -
Entrepreneurial Growth:
Empowering street vendors financially can lead to entrepreneurial growth and the creation of more self-sustaining businesses. -
Digital Adoption:
Encouraging the use of digital payments can facilitate the transition to a more cashless economy, promoting transparency and financial accountability.
Eligibility Criteria for PM Svanidhi Yojana:
To benefit from the PM Svanidhi Yojana, street vendors must meet the following eligibility criteria:
- Age: The vendor should be aged between 18 and 55 years.
- Ownership: The street vendor should possess a valid Aadhaar card.
- Business: The vendor should have been in operation on or before March 24, 2020.
- Urban Areas: The scheme is applicable to vendors in urban areas, as defined by the government.
Application Process for PM Svanidhi Yojana:
- Online Application: Interested applicants can apply for the scheme online through the designated portal.
- Verification: Once the application is submitted, the vendor’s details are verified by the authorities.
- Loan Disbursement: Upon successful verification, the working capital loan is disbursed directly to the vendor’s bank account.
Frequently Asked Questions (FAQs) About PM Svanidhi Yojana:
1. Who can benefit from the PM Svanidhi Yojana?
- Street vendors operating in urban areas are eligible for this scheme.
2. Is there any subsidy on the interest rate for the loans?
- Yes, the interest rate on these loans is subsidised and ranges from 7% to 8% per annum.
3. What is the maximum loan amount available under this scheme?
- Vendors can avail a working capital loan of up to Rs. 10,000.
4. How can vendors repay the loans under this scheme?
- Vendors are encouraged to repay their loans through digital means to avail cashback incentives.
5. What documents are required to apply for the scheme?
- Applicants need to provide their Aadhaar card, proof of vending before March 24, 2020, and a bank account.
6. Is there an insurance component to the PM Svanidhi Yojana?
- Yes, beneficiaries are covered for accidental and natural death under the scheme.
7. Can vendors apply for this scheme if they do not have formal identification documents?
- Yes, the scheme is open to vendors who do not possess formal identification documents.
8. Are there any penalties for late repayment of loans under this scheme?
- Late repayment of loans may result in the vendor losing out on the interest subsidy benefits.
9. How does the PM Svanidhi Yojana contribute to financial inclusion?
- By providing credit facilities to street vendors, the scheme fosters financial inclusion and economic empowerment.
10. What are the key objectives of the PM Svanidhi Yojana?
- The scheme aims to provide working capital loans, promote entrepreneurship, and support the livelihoods of street vendors impacted by the pandemic.
Overall, the PM Svanidhi Yojana plays a crucial role in empowering street vendors by offering them financial assistance, promoting digital transactions, and ensuring their overall well-being. This initiative not only supports the livelihoods of the vendors but also contributes to the larger goal of building a more inclusive and resilient economy.