This is a Central Sector Scheme to facilitate street vendors to access affordable working capital loan for resuming their livelihoods activities, after easing of lockdown.

The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base, which they might have consumed during the lockdown. Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.

Street vendors/ hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas.

Any person engaged in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement etc., from a temporary built up structure or by moving from place to place. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, artisan products, books/stationary etc. and the services include barber shops, cobblers, pan shops, laundry services etc.

Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions and SHG Banks are the lending institutions that will provide credit.

The Scheme shall be implemented up to March, 2022.

The Initial working capital loan is upto 10,000/- for a tenure of one year.

An applicant can access this information on the website of PMSVANidhi (pmsvanidhi.mohua.gov.in).

The Scheme is available to vendors of surrounding development/peri-urban/rural areas vending in the geographical limits of the cities/towns and those left out of the survey. If an applicant belongs to this category he/she have to produce one of the following documents to obtain the Letter of Recommendation (LoR) from Urban Local Bodies (ULBs)/Town Vending Committee (TVC):
i. Proof of availing one -time assistance provided by certain States /UTs, during the period of lockdown
ii. Documents of past loan taken for the purpose of vending
iii. The membership details with the vendors associations
iv. Any other documents to prove that you are a vendor

He/she can also request ULB through a simple application on white paper to conduct local enquiry to ascertain the genuineness of your claim. After receipt of LoR, you may approach BC/Agent to apply for the loan.

Documents which are essentially required along with CoV/ID/LoR are:
• Aadhaar Card (mandatory)
• Voter Identity Card (mandatory)
• Driving License
• MNREGA Card
• PAN Card.

Documents which are essentially required along with CoV/ID/LoR are:
• Aadhaar Card (mandatory)
• Voter Identity Card (mandatory)
• Driving License
• MNREGA Card
• PAN Card.

The rate of interest subsidy is 7%. The interest subsidy amount will be credited directly in your account on quarterly basis. In case of early payment, the admissible amount of subsidy will be credited in one go. For a loan of upto Rs 10,000, if an applicant pay all the 12 EMIs in time, he/she will get approximately Rs 400 as interest subsidy amount.

No collateral security is required.

The on-boarded vendors would be provided with a monthly cashback in the range of Rs 50 to Rs 100 as per the following criteria:

(i) On executing 50 eligible transactions: Rs 50
(ii) On executing the next 50 eligible transactions: Additional Rs 25; and
(iii) On executing the next 100 eligible transactions: Additional Rs 25

Yes, on timely/ early repayment of loan of initial working capital, a vendor becomes eligible to avail a higher tranche of loan in next cycle.

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

Yes, vendor will be issued Provisional Identity Card on approval of loan and permanent CoV/ID will be issued within 30 days.

Complete process will be automated through a Mobile App and Web Portal. Vendor will be able to check real time status of your application. Whole process, if paper/information is complete, may take less than 30 days.