New Delhi – In a major step towards supporting economic self-reliance among India’s urban poor, the central government is offering unsecured loans up to ₹80,000 under the PM Street Vendor’s AtmaNirbhar Nidhi (PM Svanidhi) Yojana. This micro-credit initiative aims to uplift small vendors and daily earners, especially those in financially vulnerable conditions, by enabling them to start or expand their businesses without the burden of collateral.
What Is PM Svanidhi Yojana?
Launched by the Ministry of Housing and Urban Affairs, the PM Svanidhi Yojana is designed to empower street vendors, hawkers, and micro-entrepreneurs who have limited access to formal credit systems. The scheme provides micro-loans in progressive phases and encourages timely repayment through incentives. One of the most significant advantages of this scheme is that beneficiaries are not required to mortgage assets or provide any form of guarantee.
Loan Distribution in Three Installments
Under this scheme, the government disburses a total loan amount of ₹80,000 in three stages to eligible individuals:
First Phase: A starting loan of ₹10,000 is offered to initiate small business activities.
Second Phase: After successful and timely repayment of the first loan, beneficiaries become eligible for a ₹20,000 loan.
Third Phase: A final installment of ₹50,000 is granted to expand the business, again contingent on repayment history.
This phased approach ensures credit discipline and builds trust with lending institutions, ultimately fostering financial inclusion.
No Guarantee or Collateral Required
The most remarkable feature of the PM Svanidhi Yojana is its zero-collateral clause. The loan is disbursed purely based on the applicant’s identity and intent to engage in income-generating activities. The loan term is up to one year, and borrowers can repay in monthly EMIs. The flexibility of repayment further reduces the financial stress for small vendors.
To apply, individuals need to present valid documentation, primarily an Aadhaar card. Online application portals and local municipal bodies have also been authorized to assist in the registration and processing of the loans.
Who Can Benefit?
The scheme is particularly aimed at individuals like street hawkers, vendors, construction laborers, and others involved in informal work on public spaces like streets and pavements. It ensures that such individuals, who are often excluded from formal banking services, get access to affordable credit to sustain their livelihood.
Final Word
By offering unsecured micro-loans, the PM Svanidhi Yojana not only encourages entrepreneurship at the grassroots level but also aligns with the larger goal of an inclusive and self-reliant India. The scheme is a testament to the government’s commitment to providing financial empowerment to the most underserved segments of society.
Author Profile
- My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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