PM SVANidhi scheme: Get Rs.50,000 loan without any security

Ministry of Housing and Urban Affairs have launched “PM street vendor’s AtmaNirbhar Nidhi (PM SVANidhi)” scheme vide letter dated 05.06.2020. This is a special Micro-credit facility for providing affordable loan to street vendors, to resume their livelihoods, who have been adversely affected due to COVID – 19 lockdown.

The “PM SVANidhi” scheme targets to benefit over 50 lakh street vendors, who had been vending in urban areas. The scheme has been launched by the bank on 30.06.2020 and the basic features of the scheme are as under.

Eligibility

All street vendors engaged in vending in urban areas subject to having Certificate of Vending /Identity Card issued by Urban Local Bodies (ULBs).

Objective

• To facilitate working capital Term loan up to Rs. 50,000
• To incentivize regular repayment
• To reward digital transactions

Loan Amount

• 1st Tranche – From Rs. 5000/- to Rs.10000/-
• 2nd Tranche – From Rs. 15000/- to Rs.20000/-
• 3rd Tranche – From Rs. 30000/- to Rs.50000/-
• If Rs.10,000 is paid timely, then you can get Rs.20,000 and afterwards Rs.50,000 respectively

Rate of Interest

• RLLR + Spread (0.15%) + Service Charge (3.72%)

Interest Subsidy

• 7%, available on quarterly basis

Collateral Security

• NIL

Guarantee Coverage

• Guarantee Coverage shall be provided by CGTMSE without any Charge

Service Charges

• NIL
• (No Processing Fee, Documentation Fee, Inspection Charges, Prepayment Charges or Penal Interest shall be charged)

Incentives

• On timely and early repayment next tranche of WCTL with enhanced limit

Monthly Cash Back for digital transactions

• On first 50 Eligible Transactions = Rs.50.00
• Next 50 Eligible transactions up to 100 = Rs.25.00
• Next 100 or more eligible transactions = Rs.25.00
  (Eligible transactions means digital transactions of any value)