Ministry of Housing & Urban Affairs
PM SVANidhi Portal launch (Beta Version)
Posted On: 29 JUN 2020
Shri Durga Shanker Mishra, Secretary, Housing & Urban Affairs, today launched the Beta version of PM Street Vendor’s AtmaNirbhar Nidhi “PM SVANidhi” Portal in presence of officials from States/UTs, Banks, Payment aggregators and other stakeholders. Leveraging on the digital technology solutions, the portal provides for an integrated end to end IT interface to users for availing benefits under the scheme.
Since the launch of PM SVANidhi, on June 1, 2020, Ministry has held detailed interactions with various type of lenders e.g. Banks, MFIs and NBFCs. Taking into account the suggestions received, a detailed operational guidelines for the lenders have been prepared, which are being issued today. It is expect that shortly, all the lenders will issue detailed operating guidelines for the scheme to their field offices to facilitate smooth implementation of the scheme.
An integrated IT platform (pmsvanidhi.mohua.gov.in) to provide an end-to-end solution for scheme administration is being developed by SIDBI, which is the scheme implementation partner for PM SVANidhi. The portal will facilitate multiple scheme functions viz. loan application flow, Mobile App, e-KYC of applicants, integration with UIDAI, Udyamimitra, NPCI, PAiSA, lenders, States, ULBs and other stakeholders, calculation of digital incentives and payment of interest subsidy etc.
One of the important features of the scheme is to nudge the beneficiaries towards digital transactions by engaging with the Digital Payment Aggregators. Ministry has received excellent response from all of them. Secretary, HUA expressed his pleasure on the fact that AmazonPay, FTCash, MSwipe, PayTM, PaySwiff, and PhonePe have offered to onboard the vendors free of cost by absorbing the expenses at their end. It is expected that others also will follow suit.
Further, in addition to the banks already onboarded, 15 MFIs have been onboarded on the portal and many more are expected to join in the coming weeks. The portal shall be continuously upgraded to add functionalities.
The PM SVANidhi Portal shall start accepting loan applications from Street Vendors from July 2nd, who can apply directly or with the help of CSCs/ ULBs/ SHGs. The Mobile App facilitated with e-KYC module and loan application flow, to be used by lenders and their agents for application origination, shall be released during this week. The Portal integration with various lenders shall commence during this week and over next few weeks we hope to complete this integration with all the major lenders. The module for enabling street vendors to apply directly for Letter of Recommendation (LoR) to the concerned ULB will be ready by July 10, 2020.
Secretary, HUA expressed confidence that this portal will not only enable the implementation of the scheme during next 21 months but also play a very important role in years to come for helping meet the expectations and aspirations of street vendors who play very important role in our urban eco-system.
PM SVANidhi Scheme Guidelines
Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the door-step of the city dwellers. They are known as vendors, hawkers, thelewala, rehriwala, theliphadwala etc. in different areas/ contexts. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, footwear, artisan products, books/ stationary etc. The services include barber shops, cobblers, pan shops, laundry services etc. The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base and might have consumed the same during the lockdown. Therefore, there is an urgent need to provide credit for working capital to street vendors to resume their business.
The scheme is a Central Sector Scheme i.e. fully funded by Ministry of Housing and Urban Affairs with the following objectives: (i) To facilitate working capital loan up to `10,000; (ii) To incentivize regular repayment; and (iii) To reward digital transactions
The scheme will help formalize the street vendors with above objectives and will open up new opportunities to this sector to move up the economic ladder.
3. Eligibility of States/UTs
The Scheme is available for beneficiaries belonging to only those States/UTs which have notified Rules and Scheme under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Beneficiaries from Meghalaya, which has its own State Street Vendors Act may, however, participate.
4. Eligibility Criteria of Beneficiaries
The Scheme is available to all street vendors engaged in vending in urban areas as on or before March 24, 2020. The eligible vendors will be identified as per following criteria:
(i) Street vendors in possession of Certificate of Vending / Identity Card issued by Urban
Local Bodies (ULBs); (ii) The vendors, who have been identified in the survey but have not been issued Certificate of Vending / Identity Card;
Provisional Certificate of Vending would be generated for such vendors through an IT based Platform. ULBs are encouraged to issue such vendors the permanent Certificate of Vending and Identification Card immediately and positively within a period of one month.
(iii) Street Vendors, left out of the ULBled identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC); and
(iv) The vendors of surrounding development/ peri-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC.
5. Identification of Beneficiaries left out of the Survey or belonging to the surrounding Rural Areas While identifying the vendors belonging to category 4 (iii) and (iv), the ULB/ TVC may consider any of the following documents to issue letters of recommendation:
(i) The list of vendors, prepared by certain States/ UTs, for providing one-time assistance during the period of lockdown; OR
(ii) A system generated request sent to ULBs/ TVCs for issue of LoR based on the recommendation of the Lender after verifying the credentials of the applicant; OR (iii) The membership details with the vendors associations including National Association of Street Vendors of India (NASVI)/ National Hawkers Federation (NHF)/ Self-Employed Women’s Association (SEWA) etc.; OR (iv) The documents in possession of the vendor buttressing his claim of vending; OR (v) Report of local enquiry conducted by ULB/ TVC involving Self-Help Groups (SHGs), Community Based Organizations (CBOs) etc. ULB shall complete the verification and issuance of LoR within 15 days of the submission of application.
Further, ULBs may adopt any other alternate way for identifying such vendors with a view to ensure that all the eligible vendors are positively covered.
6. Vendors who have gone back to their native places due to COVID-19 Some of the identified / surveyed or other vendors who have been vending / hawking in urban areas, have left for their native places prior to or during the lockdown period because of COVID-19 pandemic. Such vendors are likely to come back after the situation normalizes and resume their business. These vendors, whether from rural / peri-urban areas or city dwellers will be eligible for the loan on their return as per eligibility criteria for identification of beneficiaries mentioned above in para 4 & 5.
7. Data in Public Domain
The State / UT / ULB-wise list of identified street vendors will be made available on the website of the Ministry/ State Government/ ULBs and Web Portal developed for the purpose.
8. Brief Details of the Product
Urban street vendors will be eligible to avail a Working Capital (WC) loan of up to `10,000 with tenure of 1 year and repaid in monthly instalments. For this loan, no collateral will be taken by the lending institutions. On timely or early repayment, the vendors will be eligible for the next cycle of working capital loan with an enhanced limit. No prepayment penalty will be charged from the vendors for repayment before the scheduled date.
8.1 Rate of Interest
In case of Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks & SHG Banks, the rates will be as per their prevailing rates of interest. In case of NBFC, NBFC-MFIs etc., interest rates will be as per RBI guidelines for respective lender category. In respect of MFIs (non NBFC) & other lender categories not covered under the RBI guidelines, interest rates under the scheme would be applicable as per the extant RBI guidelines for NBFC-MFIs.
8.2 Interest Subsidy
The vendors, availing loan under the scheme, are eligible to get an interest subsidy @ 7%. The interest subsidy amount will be credited into the borrower’s account quarterly. Lenders will submit quarterly claims for interest subsidy for quarters ending as on June 30, September 30, December 31 and March 31 during each financial year. Subsidy will only be considered in respect of accounts of borrowers, which are Standard (non-NPA as per extant RBI guidelines) on respective claim dates and only for those months during which the account has remained Standard in the concerned quarter. The interest subsidy is available up to March 31, 2022. The subsidy will be available on first and subsequent enhanced loans up to that date. In case of early payment, the admissible amount of subsidy will be credited in one go.
8.3 Promotion of Digital Transactions by Vendors The scheme will incentivize digital transactions by vendors through cash back facility.
Follow 3 STEPs before starting the online Application Process:
1. Understand the loan application requirements
Properly understand the information & documents required to fill the Loan application form (LAF) for the Scheme. Keep all the information ready before you start the application process.
2. Make sure your mobile number is linked to your Aadhaar
You are requested to make sure that your mobile phone is linked to your aadhaar number. This will be required for your e KYC/Aadhaar validation during online application process. It will also help you to get letter of Recommendation from ULB (in case required). It will also help you avail future benefits under Government welfare schemes.
It is understood from UIDAI officials that for updating mobile numbers, only a form has to be filled and no additional document is required. A link to UIDAI portal where you can find details of the nearest Aadhaar centre is provided below.
3. Check your eligibility status as per scheme Rules ion to be kept ready
You will fall in one of the following 4 categories of Street vendors. Check your status and the documents/ information which you need to keep ready
|Category||Vendor Status||Action required by Vendor|
|A.||Vendor has been covered in the survey of Urban Local Body (ULB) and have been issued Certificate of Vending (CoV) or Identity card (ID Card) by ULB or the Town Vending Committee||
|B.||If have been covered in the survey of Urban Local Body (ULB) and have been issued Certificate of Vending or Identity card by the ULB or the Town Vending Committee||
|C.||Street vendors, left out of the ULB-led identification survey or who have started vending after completion of the survey.
2 sub categories will be there :
C1 : Vendor has been issued Letter of Recommendation by ULB/ TVC
C2 : Vendor has not been issued LoR
|C1 : Vendor has been issued Letter of Recommendation by ULB/ TVC||
|C2 : Vendor has not been issued LoR||
|D.||Street vendors of surrounding development/ peri-urban / rural areas vending in the geographical limits of the ULBs (not covered in Survey). 2 sub categories will be there:|
|D1 : Vendor has been issued Letter of Recommendation by Same as C1
D2 : Vendor has not been issued LoR Same as C2
Once you have followed the above 3 steps you are ready to start the application process on the portal. You can apply directly yourself and also through a Common Service Centre(CSC) near you locality.