PM SVANidhi Scheme: Farmers will get financial help under this scheme, know how to apply
PM SVANidhi Scheme: The good news is that you may seek financial assistance whether you own a salon, fruit and vegetable stands, street vendors, handcarts, or any other small company. You may get a loan of up to Rs 50,000 without a guarantor under the Pradhan Mantri Street Vendors Atmanirbhar Nidhi (PM SVANidhi) program of the national government. The unique feature is that the government offers interest subsidies and rewards on digital transactions when the loan is repaid.
PM SVANidhi Yojana: What is it?
In 2020, the Pradhan Mantri SVANidhi Yojana was launched to provide financial assistance to street vendors who were having trouble amid the coronavirus outbreak. Those who establish fruit and vegetable stands, handcarts, small businesses, laundromats, salons, paan shops, and other types of businesses in urban areas are eligible for simple loans without any guarantees.
What is the available loan amount?
A total loan of up to Rs 50,000 is provided under the initiative in three stages:
- The first loan is Rs 10,000 and must be paid back within a year.
- Second loan: up to Rs 20,000, with an 18-month payback term.
- Third loan: 36-month payback term, up to Rs 50,000.
What unique characteristics does the scheme have?
- Loans are offered with no assurance.
- When the loan is repaid on schedule, a 7% interest subsidy is instantly sent into the account.
- Up to Rs 1,200 in cashback on online purchases.
- Interest subsidy is paid in full when a loan is repaid early.
Who is providing the loan?
Cooperative banks, small finance banks, microfinance firms, and government and private banks all around the nation are providing loans under this program. The Small Industries Development Bank of India (SIDBI) is in charge of running the program. The banks listed below are offering loans.
- State Bank of India
- Bank of Baroda
- Punjab National Bank
- Union Bank of India
- Canara Bank
- Bank of India
- Indian Bank
- Central Bank of India
- Indian Overseas Bank
- Bank of Maharashtra
These states stand to gain the most
The states in the nation with the highest concentrations of hawkers and handcart vendors in metropolitan areas have benefited the most from the Pradhan Mantri Swanidhi Yojana. Under this program, over 68 lakh street sellers have so far benefited financially. The program has been quite successful, particularly in Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, Karnataka, Kerala, Delhi, Punjab, Maharashtra, Gujarat, and Chhattisgarh. By obtaining simple loans without any guarantees, thousands of small company owners, fruit and vegetable sellers, hairdressers, paans, and other unorganized sector entrepreneurs in these states are able to revitalize their enterprises.
Specifically, which papers are needed?
A few crucial papers must be provided in order to get the loan:
- The Aadhaar Card
- Voter identification
- MNREGA card, PAN card, or driver’s license (any one document)
- Aadhaar must be connected to a mobile number.
How and where can I apply?
Applying for PM Svanidhi Yojana benefits is a pretty simple procedure. You may apply in person at the closest facility or from home. You may apply for this online at https://pmsvanidhi.mohua.gov.in, the scheme’s official website. Additionally, the application feature is accessible via a mobile app. You may get in touch with the closest banking correspondent or Common Service Center (CSC) if you’re having trouble completing the process online. The application procedure will be finished here when your papers have been reviewed. Make sure you have all the required paperwork with you and that your mobile number is connected to Aadhaar before submitting an application.
Who is eligible to benefit from the plan?
The Pradhan Mantri Swanidhi Yojana is available to all of the nation’s street vendors that operate from sidewalks, handcarts, or tiny stores in cities and towns. This requires that the vendors have been operating on the streets prior to March 24, 2020. This program is immediately available to those whose names are on the municipal body’s survey or who have a Certificate of Vending issued by the municipal body. If a vendor’s name is not on the survey, he may still profit from the program by obtaining a recommendation letter from the Town Vending Committee or ULB (Urban Local Body). In addition, the program will also be open to residents of rural regions around metropolitan areas who move to the city and open a handcart, rehri, or other small business.