S.N.

Particulars

Product Details

1

Name of the Product

Restructured PM SVANidhi Scheme

2

Purpose of the product

The objective of the scheme is to address the vulnerabilities of the street vendors through a multi-pronged approach. This includes:

1. Recognition of Street Vendors;
2. Financial Inclusion via working capital term loan in three tranches;
3. Access to UPI linked credit card;
4. Promote digital adoption;
5. Capacity Building;
6. Linkages to social security schemes

3.

Eligibility

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

1. 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
2. SVs operating in census towns, peri-urban areas etc., who have received an LoR approved by their Block Development Officer (BDO).

3.

Nature of Facility

Working Capital Term Loan (WCTL)- Working Capital in the form of Term Loan

4.

Age Limit

Must be an adult (minimum 18 years); no upper age limit

5.

Quantum and tenure

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 installments.

(Note: pre-payment is allowed without any penalty or cost.)

A UPI linked RuPay Credit Card will be available as an additional facility for PM SVANidhi beneficiaries who have successfully repaid their 2nd tranche loan and are eligible for 3rd tranche loan under the PM SVANidhi Scheme. This card will be a domestic card and initially the credit limit will be Rs. 10,000 which will be gradually increased to Rs. 30,000, the card will be valid for a period of 5 years.

(Note: Circular and product details of credit card to be issued in due course)

6

Documents required

The following documents must be submitted by the applicant:

1. CoV/ ID Card/ LoR issued by ULBs or TVC, to SVs working within ULB’s jurisdiction or LoR approved by the BDO to SVs operating in census towns, peri-urban areas etc.
2. Aadhaar Card
3. Voter Identity Card (for SVs from Assam and Meghalaya only) who do not have Aadhaar Card
4. Savings Bank Account Passbook/ Bank Statement with account details of the SV
5. Valid and Unique UPI ID linked to the SVs bank account

Note: All LoRs must be applied for and issued through the PM SVANidhi Portal (PMS Portal). Manually issued LoRs will not be valid.

7

Rate of Interest

The ROI will be as per their prevailing rates of interest:

RLLR + 1.45% + BSS (0.50) i.e. at present effective rate is 8.30% + 1.45% + 0.50% = 10.25% p.a.

8

Interest Subsidy

• SVs availing loans under the scheme will be eligible for an interest subsidy at the rate of 7% per annum.
• The subsidy will be credited directly to the borrower’s account on a quarterly basis.
• Interest subsidy will be admissible only for loan accounts that are classified as ‘Standard’ (non-NPA) as per prevailing RBI guidelines on the respective claim dates.
• All loans disbursed till March 31, 2030 would be eligible for interest subsidy and LIs should claim interest subsidy for a quarter in the subsequent quarter itself. However, all claims for interest subsidy benefit to be claimed by the LIs well before March 31, 2033.

• Tranche wise maximum eligible subsidy amount is mentioned hereunder:

9

Moratorium

No moratorium period

10

Margin

NIL

11

Security

Hypothecation of goods/assets financed under the Scheme.

12

Collateral

No collateral.

13

Credit Score

Not applicable for SVs under this scheme. Loan may be denied only if any existing loan is NPA or an account is written off by any Lending Institution.

14

Udyam Registration

Not required

15

Project Proposal

Not required

16

Monitoring/ End Use Verification

As this scheme is a special initiative supported by the Government of India to integrate SVs into the formal banking system, as per scheme directives, it is advised to limit monitoring to the provisions explicitly outlined under the scheme.

17

Scheme Validity

• The lending period under the scheme is valid till March 31, 2030.
• Liabilities under the components like credit guarantee, interest subsidy for loans and incentives for digital transactions etc. will be serviced until March 31, 2033
• Credit guarantee claims for credit card will be serviced until March 31, 2035

18

Guarantee Coverage and fee

• The Scheme has a provision of Graded Guarantee Cover provided to Lending Institutions for the loans sanctioned, as indicated below, to be administered by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which will be operated on portfolio basis:

• 31.87% for 1st tranche loan,
• 8.25% for the 2nd tranche loan, and
• 6% for the 3rd tranche loan

19

Insurance

• 1 st Tranche - Nil
• 2 nd Tranche – Nil
• 3 rd Tranche - Not mandatory; Branch may explore the possibility of obtaining insurance in 3^rd tranche loans by convincing the borrower

20

Loan documentation

For all 3 tranches - DPN and Undertaking;

(For 3 rd Tranche only: optional one-time declaration on stock/ use of funds; no insistence on receipts.)

21

Processing Fee

Nil

22

Prepayment Charges

Nil

23

Documentation/Other Charges

As per extant guidelines

24

Delegation

Branch Head of scale I and above (except officers on probation) are eligible for sanction under this scheme.

25

PMS Portal URL

https://pmsvanidhi.mohua.gov.in

26

Product code

Existing product code modified herewith with the enhanced limit tranche wise as per new guidelines

27

Note

Rest all other terms and conditions as issued from time to time under the PM Svanidhi Scheme to remain unchanged.