Launched on June 01, 2020, the PM SVANidhi scheme is designed to serve the interest of street vendors. It offers an affordable business loan to beneficiaries with several other notable benefits like early repayment incentives. The initiative not only aids vendors to resume their livelihoods in these difficult times but also ensures flourishing economic growth through their business.
The ongoing coronavirus pandemic severely affected the livelihood of several street vendors. From the inability to carry out their business due to the lockdown to several constraints on the overall function, the effects have been adverse. The PM SVANidhi scheme allows vendors a capital of up to ₹10,000 which can be repaid through monthly instalments over one year.
UP, MP, and Telangana Lead the Charts
While the PM SVANidhi loan has been widely implemented across India, there are some states that are successfully leading in extending this scheme. As per government reports, a total of ₹1,363.88 cr was offered through the scheme until January 31, 2021. This amount was availed by 13.82 lakh beneficiaries from the total of 18.38 lakh applicants. As per the data analytics, about one-fourth of the loans (₹354.26 cr) were disbursed in Uttar Pradesh followed by Madhya Pradesh (₹238.40 cr) and Telangana (₹237.35 cr). Manipur, Tripura, and West Bengal followed with significantly lower numbers of ₹4.24 cr, ₹1.44 cr, and ₹11.6 lakh respectively. The numbers continue to grow, and the scheme is expected to be picked up in other states too.
To further facilitate easy application, the PM SVANidhi Mobile app has been developed to provide a simple and user-friendly interface for lending institutions. It promotes easy accessibility as it carries several features like e-KYC processing of applications and real-time loan process monitoring. The application also aids with the survey data of vendors.
The PM SVANidhi Mobile app can be downloaded through the Google Play Store. The app also encourages the use of digital technology apart from aiding the loan process. The ministry aims to ensure maximum coverage of the scheme through this app. From giving impetus to the wide implementation of the scheme to promoting paperless digital access for loans, there is immense improvement expected to come about with this app.
Top Availing Street Vendors
As per the available data displayed through the PM SVANidhi dashboard, 46% of the beneficiaries of the scheme were fruit and vegetable vendors. Street vendors who cater to the fast food and other consumable needs of the cities comprised 21% of the beneficiaries who availed the loan. Vendors of cloth and handloom, beauty and fashion accessories, and flower and puja items comprised 13%, 5%, and 3% of the beneficiaries, respectively.
The data also shed light on the average age of applicants applying for the scheme. The average age of applicants is 41 years. As for the male and female ratio, 61% of the loans were availed by men and 39% by women.
What is the Loan Application Process?
The scheme loan is offered through a relatively simple process to enable beneficiaries to make the most of this opportunity. Here are the steps that can be used to apply for the PM SVANidhi Scheme Loan:
- Visit the www.pmsvanidhi.mohua.gov.in website.
- Click on the apply for a loan option.
- You will then be prompted to enter your mobile number and captcha.
- Once you select the category you must fill in all the required details.
- After evaluating your details for clarity, click on submit.
Prerequisites to Note Before Applying for the PM SVANidhi Scheme
It is imperative to have all the essentials in place before applying for the PM SVANidhi Scheme. This will ensure that the application is accepted, and the process is smooth. Some of the pre-checks to undertake before applying for the loan include:
- Understand and evaluate the loan application requirements set by the ministry.
- Link your Aadhaar card with your mobile number.
- Go through the detailed eligibility criteria listed down on the official PM SVANidhi portal to ensure that all the scheme related criteria are met before finally applying.