Bank loans for street vendors: Here's what PM SVANidhi scheme offers

Bank loans for street vendors: Here's what PM SVANidhi scheme offers

To protect the livelihoods of street vendors post Covid, the govt introduced PM SVANidhi in June 2020 to provide collateral-free microloans

To protect the livelihoods of street vendors post Covid, the govt introduced PM SVANidhi in June 2020 to provide collateral-free microloans

Street vendors such as vegetable, fruit sellers, tea, pan shops, barbers, cobblers, etc. with no GST registration and Udyam registration can get working capital credit from formal lenders

Street vendors such as vegetable, fruit sellers, tea, pan shops, barbers, cobblers, etc. with no GST registration and Udyam registration can get working capital credit from formal lenders

So far, 63.84 lakh loans worth Rs 8410.95 crore have been sanctioned, of which more than 60 lakh loans have been disbursed amounting to Rs 7,856 crore

So far, 63.84 lakh loans worth Rs 8410.95 crore have been sanctioned, of which more than 60 lakh loans have been disbursed amounting to Rs 7,856 crore

Credit limit: Loans up to Rs 50,000 can be granted under the scheme beginning with Rs 10,000 in the first tranche and Rs 20,000 in the second tranche

Credit limit: Loans up to Rs 50,000 can be granted under the scheme beginning with Rs 10,000 in the first tranche and Rs 20,000 in the second tranche

The first tranche is repayable in 12 monthly instalments. For the second tranche, the minimum repayment period is six months and a maximum of 18 months to be eligible for the third tranche

The first tranche is repayable in 12 monthly instalments. For the second tranche, the minimum repayment period is six months and a maximum of 18 months to be eligible for the third tranche

Eligibility: Street vendors who have the Certificate of Vending issued by Urban Local Bodies (ULBs) are eligible

Eligibility: Street vendors who have the Certificate of Vending issued by Urban Local Bodies (ULBs) are eligible

Those not covered under the survey, are issued a Letter of Recommendation (LoR) by their respective ULB to apply for the scheme

Those not covered under the survey, are issued a Letter of Recommendation (LoR) by their respective ULB to apply for the scheme

Documents: A vendor can get his/her KYC done through any of the documents such as Aadhaar, identity card, driving licence, MNREGA card, and PAN

Documents: A vendor can get his/her KYC done through any of the documents such as Aadhaar, identity card, driving licence, MNREGA card, and PAN

The vendors repaying their loans on time will be eligible for a 7 per cent interest subsidy for all loan tranches paid on a quarterly or half-yearly basis for standard accounts

The vendors repaying their loans on time will be eligible for a 7 per cent interest subsidy for all loan tranches paid on a quarterly or half-yearly basis for standard accounts

There is no penalty for the pre-closure of the loan

There is no penalty for the pre-closure of the loan

The loan process is automated through a mobile app and web portal and takes less than 30 days for the application to be approved

The loan process is automated through a mobile app and web portal and takes less than 30 days for the application to be approved

The vendor can apply for the loan through the scheme’s portal or mobile app.

The vendor can apply for the loan through the scheme’s portal or mobile app.

Also, vendors can approach a nearby Common Service Centre (CSC) to apply for the loan

Also, vendors can approach a nearby Common Service Centre (CSC) to apply for the loan

Images: Pexels

Images: Pexels