PM – SVANidhi

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Scheme Name

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PM – SVANidhi

Scheme Name: PM – SVANidhi

Under the restructured PM SVANidhi Scheme, a City-Region approach has been adopted to position cities as “growth hubs.” This approach expands the scheme’s coverage to progressively include census towns, peri-urban areas etc., in a graded manner

Eligibility:.The scheme is intended for Street Vendors (SVs) vending in ULBs, census towns and peri-urban areas etc. across all States and Union Territories. Eligible Street Vendors (SVs) will be identified based on the following criteria:

1. Street Vendors (SVs) who possess a valid Letter of Recommendation (LoR) or Certificate of Vending (CoV) or Identity Card (ID Card) issued by the Urban Local Bodies (ULBs)/ Town Vending Committees (TVCs);

Or

Street Vendors (SVs) operating in census towns, peri-urban areas etc., who have received an LoR approved by 

Purpose/Objective: The loan component of the PM SVANidhi scheme is designed to:

• Extend working capital term loans to Street Vendors, helping them restart, sustain, and grow their businesses.
• Offer interest subsidies as an incentive for repayment.
• Promote financial self-reliance among Street Vendors by strengthening their long-term livelihood security and facilitating their transition to formal credit systems through structured loan access and credit

Udyam Registration Certificate:Udyam Registration Certificate Not Required.

Nature of Facility: WCDL (Term Loan),

Quantum of Finance:

The loan facility will be extended in three tranches, with each subsequent tranche being disbursed only upon full repayment of the preceding one. All loans will be collateral-free, offered for a defined tenure, and repayable through monthly instalments.

Repayment: 

First Tranche      : 12 months

Second Tranche: 18 months

Third Tranche     :   36 months

Moratorium: Nil

Margin          : Nil                    

Interest Rate: RBLR + 1.50 % = 10 %

(Interest Subvention 7% is available to borrower and the net interest burden for PM SVANidhi Borrowers will be 3 % at present)

Guarantee: The scheme is covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide risk mitigation support which will be on portfolio basis Collateral Security:

Nil