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Steps Before Applying for PM Svanidhi Loan

Steps Before Applying for PM Svanidhi Loan

In a bid to boost the livelihood of street vendors who were badly affected during the lockdowns
imposed to restrict the spread of COVID-19 in 2020, the Indian government came up with the
PM SVAnidhi scheme. Unveiled as part of the PM’s Atma Nirbhar scheme, this business loan
scheme aims to provide working capital loans up to Rs. 10,000 with no collateral requirements.

With a maximum of 12 months, the loan tenor is also very relaxed, which makes it easy for the
vendors to repay the loan. That’s not all. Street vendors who avail this scheme can also enjoy a
cashback of ₹100 each month, provided they use digital means of transacting.

If you’re interested in the PM SVAnidhi loan scheme, here’s what you should know and do
before applying for the same.

1. Understand the eligibility criteria for the scheme

Firstly, before applying for PM SVAnidhi, it is crucial to check if you’re eligible for the benefits
provided under this scheme. Here’s a quick look at the eligibility criteria.

● Street vendors applying for the scheme should possess an ID card or Certificate of
Vending (CoV) issued by Urban Local Bodies (ULBs).

● If the street vendors have been identified under a survey, but don’t possess an ID card
or CoV, they can still apply using a provisional CoV obtained from ULBs.

● If the street vendors have not been identified under a survey and don’t possess an ID
card, CoV, or provisional CoV, they can still apply for the scheme using a Letter of
Recommendation (LoR) from ULBs or Town Vending Committee (TVC).

2. Ensure that your mobile number and Aadhaar is linked

The application process for obtaining a business loan through this scheme requires applicants
to go through an e KYC process via Aadhaar validation. To be able to successfully complete the
verification process, linking your mobile number with Aadhaar is extremely important.
If they’re not already linked, it is advisable to visit the website of UIDAI or the nearest Aadhaar
centre to complete the linking process before applying for the PM SVAnidhi scheme.

3. Get all the details ready

The loan application form needs to be properly filled with all the necessary and relevant
details. Any mismatch in information or missed data fields can lead to a rejection of the

application. And so, it is a good idea to keep all of the details handy to ensure that theapplication process goes on smoothly.

4. Attach all the necessary documents required

Once you’ve filled up the application form, the next step is to get all of the relevant documents
in order. Here’s a list of documents that you may have to submit along with the application
form.

● Certificate of Vending, ID card issued by ULBs, provisional CoV, or Letter of
Recommendation, as applicable

● A copy of your Aadhaar card

Conclusion

Once you’ve completed all of the above steps, you can then proceed to apply for a business loan
through the PM SVAnidhi scheme. This way, your application process is sure to go on without a
hitch. If you need any assistance with regard to the process involved with application for a
business loan through this scheme, visit Finserv MARKETS for a detailed explainer.

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