JanSamarth Portal, an online platform connecting citizens with lenders of government loan schemes is increasing in popularity. One popular loan on the platform is PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi). According to a report by the Indian Express on February 12, 2023, a study found that PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)'s initial disbursement of Rs 10,000 resulted in an extra annual income of Rs 23,460 per beneficiary. With 13 central government schemes across education, agriculture, business, and livelihood categories, available on the portal, it simplifies the application process and approval process.
Applicants can register on the portal's official website, select their desired loan category and scheme, and check eligibility criteria from there. After the applicant provides the necessary information for eligibility, the portal recommends suitable schemes from around 100 lenders. Applicants can choose the best option. The portal will then direct you to the bank's website, where you can complete the application, fill in the form, upload the required documents, and click submit. You can also track the status of your loan through the Jan Samarth portal. Let's examine PM-SVANidhi and two more popular business loans on the portal.
The Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme, launched on June 1, 2020, aims to uplift urban street vendors by offering collateral-free working capital loans up to Rs 50,000. The scheme incentivises regular repayments with a 7 per cent interest subsidy and provides cashback for digital transactions up to Rs 1,200 per year. All lending institutions, including NBFCs/MFIs, extend this loan.
This scheme also uses an Aadhaar-based e-KYC and does not need any collaterals. Street vendors/ hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas can apply.
In a bid to empower micro and small business owners, the Government of India has introduced the Pradhan Mantri Mudra Yojana (PMMY) facilitating microcredit up to Rs. 10 lakh. It extends loans to the non-corporate, non-farm sector income-generating activities of micro and small entities, the official website says.
Within this scheme, the Shishu Mudra Loan category, providing loans up to Rs 50,000, supports entrepreneurs in their early stages. The application process is streamlined through the 'Udyamimitra' portal, where Aadhar and mobile number base OTP validation is enough, eliminating the need for any collateral. MUDRA loans are also extended by banks, NBFCs, MFIs etc with just Aadhar and bank documentation without the need for any collaterals.
The Prime Minister's Employment Generation Programme (PMEGP) overseen by the Khadi and Village Industries Commission (KVIC) aims to give financial assistance to new businesses. The minimum age limit is 18 years and an educational qualification of VII standard is required to apply. The loan amounts range from Rs 9.5 lakh to Rs 50 lakh. The interest rate ranges from 11 per cent to 12 per cent, with a maximum repayment period over three to seven years. The beneficiary contributes 5 to 10 per cent of the cost of business, while the bank covers the remainder, though typically in practice only 60 to 75 per cent of the project cost is borne by the bank.
