Introduction to SBI eMudra PM Svanidhi Loan: Eligibility criteria, Steps to apply
SBI e Mudra & PM Svanidhi Loan: The Scheme is launched by Government which is particularly designed to help and provide financial assistance to small business owners. The PM Svanidhi Loan is specially designed for street vendors. The SBI bank has implemented the scheme and providing loan as per govt guidelines backed by govt guarantee and no collateral needed in this case.
Small business having requirement upto 10 Lakhs will be mainly benefited from it and Svanidhi will help street vendors who are unable to take any credit facility from any of the institution due to no history of credit or financial papers or availability of margin for their business needs. Lets have detailed information about both these schemes and how to avail the same through nationalised bank SBI.
The Svanidhi scheme is available to street vendors vending in urban areas. They will be identified as per following criteria:
- Those vendors having certificate of vending/ Identity Card issued by Urban Local Bodies (ULBs)
- Vendors who have been identified by not having certificate as above.
- Vendors who have been issued Letter of Recommendation (LoR) by ULBs or Town vending Committee.
Following criteria are checked before sanctioning of loan which should be taken care by borrowers as per bank’s guidelines.
Bank Account: You can apply to the bank where you have bank account. Bank account is must in this case although it can be simple saving account and not necessarily current account.
Identification Documents: Proof of Identity like Aadhaar Card, Voter ID Card, Passport, or any other government-issued identification docs.
Address Proof: Proof of address like Aadhaar Card, Voter ID Card, Passport, Utility bills etc may be utilized for address proof as per bank’s guidelines.
Business Type: The Svanidhi is specifically targeted for street vendors. One must have running business as street vendors who can apply easily to PM Svanidhi.
Age: Minimum age is 18 years and maximum is as per different bank’s guidelines.
Credit History: Although it was informed earlier that credit history will be checked by different banks but afterwards govt made it clear that no credit history should be made mandatory for availing the PM Svanidhi loan.
How to apply for SBI eMudra PM Svanidhi Loan:
Follow 3 important STEPs before starting the online Application Process:
- Understand all the loan application requirement before applying.
- Mobile No should belinked to your account number and aadhar.
- Check your eligibility as per the scheme of PM Svanidhi.
To avail this scheme, four types of vendors have been described and action to be taken as per the details given below:
|Category||Vendor Status||Action required by Vendor|
|A.||Vendor has been covered in the survey of Urban Local Body (ULB) and have been issued Certificate of Vending (CoV) or Identity card (ID Card) by ULB or the Town Vending Committee||
|B.||Vendor has been covered in the survey of Urban Local Body (ULB) and has not been issued Certificate of Vending or Identity card by the ULB or the Town Vending Committee||
|C.||Street vendors, left out of the ULB-led identification survey or who have started vending after completion of the survey.
2 sub categories will be there :
|C1 : Vendor has been issued Letter of Recommendation by ULB/ TVC||
|C2 : Vendor has not been issued LoR||
|D.||Street vendors of surrounding development/ peri-urban / rural areas vending in the geographical limitsvof the ULBs (not covered in Survey)
2 sub categories will be there:
|D1 : Vendor has been issued Letter of Recommendation by ULB/ TVC||
|D2 : Vendor has not been issued LoR||
After checking the aboe details, you may apply to online portal of svandhi at given link:
PM Svanidhi Official Site : https://pmsvanidhi.mohua.gov.in/Login
Important aspects of SBI eMudra PM Svanidhi Loan:
- Loan amount: PM Svanidhi is available in 10000, 20000 & 50000. As per your repaying capacity and business.
- Interest Rate: The rate of interest subsidy 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 Rs. 10,000, if you pay all the 12 EMIs in time, you will get approximately Rs 400 as interest subsidy amount.
- Collateral requirement: There is no requirement of Collateral for this loan.
- Cashback on Digital Transactions: The vendor will be eligibile for monthly cashback in the range of 50-100 if he do transactions through digital mode i.e. through QR code.
- Penalty on pre closure: There is no penalty on preclosure of loan.
- Incentive on pre-closure or timely closure: Vendor will be eligible for higher amount of loan if he closes his account on timely manner without any default.
- Instant approval and disbursement: Whole process is automated through a Mobile App and Web Portal. Vendor may check application status through it.
Documents required for applying in PM Svanidhi loan
In addition to CoV/ ID / LoR, following documents are also required for loan purpose:
- Aadhaar Card*
- Voter Identity Card*
- Driving License
- MNREGA Card
- PAN Card.
* Marked are mandatory documents.
Loan approval and Disbursement: Once the loan is approved by respective bank, disbursement has to be made for the full amount to your saving account.
Must Read: All about Online Repayment of EMI Loan