Scheme guidelines for

PM Street Vendor’s AtmaNirbhar Nidhi

(PM SVANidhi)

A Special Micro-Credit Facility for Street Vendors

Making street vendors self-reliant

AtmaNirbhar Bharat
Scheme Guidelines 01.06.2020

1. B ackground
Street vendors represent a very important The scheme will help formalize the street
constituent of the urban informal economy and vendors with above objectives and will open
play a significant role in ensuring availability up new opportunities to this sector to move up
of the goods and services at affordable rates the economic ladder.
at the door-step of the city dwellers. They
are known as vendors, hawkers, thelewala, 3. Eligibility of States/UTs
rehriwala, theliphadwala etc. in different The Scheme is available for beneficiaries
areas/ contexts. The goods supplied by them belonging to only those States/UTs which
include vegetables, fruits, ready-to-eat street have notified Rules and Scheme under
food, tea, pakodas, breads, eggs, textile, Street Vendors (Protection of Livelihood and
apparel, footwear, artisan products, books/ Regulation of Street Vending) Act, 2014.
stationary etc. The services include barber Beneficiaries from Meghalaya, which has its
shops, cobblers, pan shops, laundry services own State Street Vendors Act may, however,
etc. The COVID-19 pandemic and consequent participate.
lockdowns have adversely impacted the
livelihoods of street vendors. They usually 4. Eligibility Criteria of Beneficiaries
work with a small capital base and might have The Scheme is available to all street vendors
consumed the same during the lockdown. engaged in vending in urban areas as on or
Therefore, there is an urgent need to provide before March 24, 2020. The eligible vendors
credit for working capital to street vendors to will be identified as per following criteria:
resume their business. (i) Street vendors in possession of Certificate
of Vending / Identity Card issued by Urban
2. Objectives Local Bodies (ULBs);
The scheme is a Central Sector Scheme i.e. (ii) The vendors, who have been identified
fully funded by Ministry of Housing and Urban in the survey but have not been issued
Affairs with the following objectives: Certificate of Vending / Identity Card;
(i) T o facilitate working capital loan up to
`10,000; Provisional Certificate of Vending would be
(ii) To incentivize regular repayment; and generated for such vendors through an IT
(iii) To reward digital transactions based Platform. ULBs are encouraged to issue
such vendors the permanent Certificate of ULB shall complete the verification and
Vending and Identification Card immediately issuance of LoR within 15 days of the
and positively within a period of one month. submission of application.

(iii) S
 treet Vendors, left out of the ULB- Further, ULBs may adopt any other alternate
led identification survey or who have way for identifying such vendors with a view
started vending after completion of the to ensure that all the eligible vendors are
survey and have been issued Letter of positively covered.
Recommendation (LoR) to that effect by
the ULB / Town Vending Committee (TVC); 6. Vendors who have gone back to their
and native places due to COVID-19
(iv) T he vendors of surrounding development/ Some of the identified / surveyed or other
vendors who have been vending / hawking in
peri-urban / rural areas vending in the
urban areas, have left for their native places
geographical limits of the ULBs and have
prior to or during the lockdown period because
been issued Letter of Recommendation
of COVID-19 pandemic. Such vendors
(LoR) to that effect by the ULB / TVC.
are likely to come back after the situation
normalizes and resume their business. These
5. Identification of Beneficiaries left
vendors, whether from rural / peri-urban areas
out of the Survey or belonging to the
or city dwellers will be eligible for the loan
surrounding Rural Areas
on their return as per eligibility criteria for
While identifying the vendors belonging to
identification of beneficiaries mentioned above
category 4 (iii) and (iv), the ULB/ TVC may in para 4 & 5.
consider any of the following documents to
issue letters of recommendation: 7. Data in Public Domain
(i) T he list of vendors, prepared by certain The State / UT / ULB-wise list of identified
States/ UTs, for providing one-time street vendors will be made available on the
assistance during the period of lockdown; website of the Ministry/ State Government/
OR ULBs and Web Portal developed for the
(ii) A system generated request sent to purpose.
ULBs/ TVCs for issue of LoR based on
the recommendation of the Lender after 8. Brief Details of the Product
verifying the credentials of the applicant; Urban street vendors will be eligible to avail
OR a Working Capital (WC) loan of up to `10,000
(iii) T
 he membership details with the vendors with tenure of 1 year and repaid in monthly
associations; instalments. For this loan, no collateral will be
OR taken by the lending institutions.
(iv) The documents in possession of the vendor
buttressing his claim of vending; On timely or early repayment, the vendors will
OR be eligible for the next cycle of working capital
(v) Report of local enquiry conducted by ULB/ loan with an enhanced limit. No prepayment
TVC involving Self-Help Groups (SHGs), penalty will be charged from the vendors for
Community Based Organizations (CBOs) repayment before the scheduled date.
etc.
8.1 Rate of Interest
In case of Scheduled Commercial Banks,

Scheme Guidelines | 5
 Regional Rural Banks (RRBs), Small Finance BharatPay, AmazonPay, PhonePe etc. will be
Banks (SFBs), Cooperative Banks & SHG used to on-board the street vendors for digital
Banks, the rates will be as per their prevailing transactions. The onboarded vendors would
rates of interest. be incentivised with a monthly cashback in
the range of `50 - `100 as per the following
In case of NBFC, NBFC-MFIs etc., interest criteria:
rates will be as per RBI guidelines for (i) On executing 50 eligible transactions in a
respective lender category. month: `50;
(ii) On executing the next 50 additional
In respect of MFIs (non NBFC) & other eligible transactions in a month: `25 (i.e
lender categories not covered under the RBI on reaching 100 eligible transactions, the
guidelines, interest rates under the scheme vendor to receive `75); and
would be applicable as per the extant RBI (iii) On executing the next additional 100 or
guidelines for NBFC-MFIs. more eligible transactions: `25 (i.e on
reaching 200 eligible transactions, the
8.2 Interest Subsidy vendor to receive `100).
The vendors, availing loan under the scheme,
are eligible to get an interest subsidy @ 7%. Here eligible transactions mean a digital
The interest subsidy amount will be credited payout or receipt with minimum value of `25.
into the borrower’s account quarterly. Lenders An illustration of the EMI on a loan of `10,000
will submit quarterly claims for interest subsidy @ 24% rate of interest, the interest subsidy
for quarters ending as on June 30, September @7% and the maximum cashback amount
30, December 31 and March 31 during each received as incentive is given at Annexure – B.
financial year. Subsidy will only be considered
in respect of accounts of borrowers, which 9. Who can lend
are Standard (non-NPA as per extant RBI Scheduled Commercial Banks, Regional Rural
guidelines) on respective claim dates and only Banks (RRBs), Small Finance Banks (SFBs),
for those months during which the account has Cooperative Banks, Non-Banking Finance
remained Standard in the concerned quarter. Companies (NBFCs), Micro Finance Institutions
The interest subsidy is available up to March (MFIs) & SHG Banks established in some
31, 2022. The subsidy will be available on first States/UTs e.g. Stree Nidhi etc. The lending
and subsequent enhanced loans up to that institutions will be encouraged to use their
date. network of field functionaries i.e. Business
Correspondents (BCs) / Constituents/ Agents
In case of early payment, the admissible extensively to ensure maximum coverage of
amount of subsidy will be credited in one go. the scheme.

8.3 P romotion of Digital Transactions by States of Andhra Pradesh and Telangana

Vendors do not have presence of MFIs. However,
The scheme will incentivize digital transactions they have a robust network of SHGs and
by vendors through cash back facility. The their Federations which may be utilised to
transaction trail so created will build the complement the efforts of SCBs/ RRBs/ SFBs/
credit score of vendors for enhancing their NBFCs and Cooperative Banks in mobilizing
future credit needs. The network of lending and generating loan applications for Street
institutions and digital payment aggregators Vendors. For this, these States may devise a
like NPCI (for BHIM), PayTM, GooglePay, suitable incentive mechanism for the SHGs.

6 | Scheme Guidelines
10. C redit Guarantee
The Scheme has a provision of Graded
Guarantee Cover 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:
a) First Loss Default (Up to 5%): 100%
b) Second Loss (beyond 5% up to 15%): 75%
of default portfolio
c) Maximum guarantee coverage will be 15%
of the year portfolio.

All loans given by each lending institution

under the scheme will be considered for
coverage under the guarantee. The periodicity
of filing of claims by lending institutions will be
quarterly.
12. Formation of Collectives of the Vendors
All the participating lending institutions shall As per prevailing practice, the individual
be eligible to avail this guarantee cover without lending institution may form Joint Liability
any charges. Groups (JLGs) of eligible vendors. The
Common Interest Groups (CIGs) of street
Further, a representative of MoHUA shall be a vendors, already formed by States, can be
special invitee at the meetings of the Board of converted into JLGs by lending institutions.
trustees of CGTMSE whenever the Scheme is The ULBs should extensively encourage
taken up for consideration. formation of CIGs of the street vendors to
ensure maximum coverage of the scheme.
11. T  own Vending Committee
The Town Vending Committee (TVC) plays List of CIGs of street vendors formed by ULBs
a very important role in identification of will be shared with the lending institutions.
beneficiaries. As provided in the Street Vendors Similarly, the lending institutions will share the
Act, 2014, TVC consists of maximum 18 list of JLGs of eligible street vendors formed
members with following composition: with respective ULBs.
(i) M unicipal Commissioner or Chief Executive
Officer of ULB as Chairperson; Formation of such collectives is preferred and
(ii) 5 0% of members (including chairperson) encouraged. However, it does not preclude
representing various local authority individual vendors from availing the loan.
departments, police, and street vendors’
and traders’ associations etc; 13. E-commerce & Quality Improvement
(iii) 4 0% of members representing street The States/ UTs should prepare a roadmap for
vendors; and building up the capacities of street vendors to
(iv) 10% of members nominated from NGOs/ conduct e-Commerce and obtain necessary
CBOs. quality certifications from the concerned
agencies like FSSAI etc.

Scheme Guidelines | 7
 16. Integrated IT application for Scheme
Administration
An Integrated IT Platform along with Mobile
App will be developed by the Ministry for
administration of the scheme. This Portal will
provide one stop solution for administration
of the scheme. The IT Platform will integrate
with the vendors data bases across the States/
UTs, BCs/ constituents/ agents of lending
institutions, digital payment aggregators
and PAiSA portal of MoHUA and Udyami
Mitra portal managed by Small Industries
Development Bank of India (SIDBI).

17. Implementation Mechanism

14. Capacity Building & Financial Literacy A kick-start meeting to explain the scheme
A comprehensive capacity building plan will be objectives and implementation mechanisms
developed to build the capabilities of different will be organised by the ULB involving the
stakeholders like BCs/ Agents of lending TVC members, BCs/ constituents/ agents of
institutions like banks/ NBFCs/ MFIs, SHGs/ lending institutions, vendors associations,
federations, implementing bodies like ULBs/ SHG Federations etc. During the meeting, the
TVCs and digital payment aggregators to information relating to street vendors and field
ensure effective delivery of Scheme. level functionaries of lending institutions will be
Capacities of digital payment aggregators shared.
like NPCI and payment aggregators will be
leveraged to impart financial literacy to the Applicants (street vendors), in possession of
street vendors for encouraging on-boarding on Certificate of Vending / ID Card issued by ULB
digital platforms. and those covered in the ULB led identification
survey may approach or be approached by
15. B randing and Communication the representatives of the Banks, NBFCs and
Branding is an important aspect of MFIs. The lender representatives, including
communicating the scheme accurately to BCs and Agents will key in the relevant details
different stakeholders, especially to the in the search engine of the IT platform/ mobile
target beneficiaries. A standard Branding and App. For the successful cases, beneficiary
Communications Guidelines of the Scheme verification will happen through an OTP sent to
shall be issued separately. the beneficiary’s mobile.

Innovative use of various platforms including A provision will be made available in the IT
the local and social media will be encouraged application to generate a provisional CoV/
to reach the targeted beneficiaries in an ID for the Street Vendors covered in the
effective and engaging manner. Necessary identification survey and not issued CoV /
Information, Education and Communication ID. After verification, BC / Agent will fill-in the
(IEC) and capacity building modules will be application form and upload the necessary
provided by MoHUA. documents. The filled-up application
information will then move electronically to

8 | Scheme Guidelines
ULB / TVC. The ULB / TVC will have to verify b) At State/ UT level - a Monitoring Committee
the details within a fortnight; after which the under the chairmanship of Principal Secretary/
application will move to the concerned lending Secretary of Urban Development/ Municipal
institution for sanction. Administration (composition of the committee
is at Annexure-D), which shall meet at least
The Street Vendors not covered in the every three months.
identification survey may approach the BC
/ Agent with the documents mentioned in c) At ULB level, there will be a Committee
para 5 above. The Agent will ensure that the headed by the Municipal Commissioner/
identification documents are uploaded first for Executive Officer (EO) and supported by the
these types of beneficiaries and later a similar Town Vending Committee to sponsor loan
process as mentioned above will follow. ULB applications and monitor implementation of
will verify the details and attach a letter of the scheme (composition of the committee is
recommendation before forwarding it to the at Annexure-E). This committee will meet every
lender. A copy of the letter of recommendation month.
will be given to the applicant also.

Preparatory activities, as indicated in the

Annexure-A will be carried out during June
2020 and loans will commence from July,
2020.

18. Implementation Partner (s)

Small Industries Development Bank of India
(SIDBI) will be the implementation partner of
the Ministry of Housing and Urban Affairs for
scheme administration. SIDBI will leverage
the network of lending Institutions including
the SCBs, RRBs, SFBs, Cooperative Banks,
NBFCs & MFIs for scheme implementation.

19. C
 ommittees for Steering & Monitoring
of the Scheme
The Scheme will have the following
management structure at the Central, State/
UT and ULB level for effective implementation
and monitoring of the scheme:

a) At Central level - a Steering Committee

under the chairmanship of Secretary,
HUA (composition of the committee is at
Annexure-C).

Scheme Guidelines | 9
 Annexures

Annexure a
Preparatory Activities during June, 2020

Sl. No. Activity

1. Dissemination of information on the Scheme and related activities to states/ UTs and
other stakeholders

2. Issue of operational guidelines

3. Mapping of BCs/ Constituents/ Agents of respective lending institutions

4. Organising kick start meetings by the ULBs involving the TVC members with
BCs/ constituents/ agents of lending institutions, vendors associations, SHG
Federations etc.
5. Capacitybuilding for all stakeholders e.g. ULB/ TVC functionaries, BCs/ Constituents/
Agents of Lending Institutions, digital payment aggregators, SHGs and their
federations and DAY-NULM functionaries etc.

6. Formation of Common Interest Groups (CIGs) of street vendors by the ULB

7. Notification of Rules/ Scheme by the States/ UTs, which are yet to do so, as per the
Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act,
2014
8. For identification of vendors, who have been left out of survey or who vend in the city
from the surrounding/ developmental/ rural areas, following methods may be used:
(a) Quick survey by ULBs through SHGs/ Federations under DAY-NULM, and/ or
(b) Inviting applications by ULBs

9. Issue of Letters of Recommendation for the vendors mentioned in row 8

10. Issue of Certificate of Vending (CoV) / Identity Cards (IDs) to all street vendors covered
in the surveyed list

11. Commencement of formation of Joint Liability Groups (JLGs) by BCs/ Agents of

lending institutions

12. Collection and processing of loan applications

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Annexure B
An illustration on the cash-back and interest subsidy under the Scheme
for a loan amounting to `10,000

Month Principal Interest @ EMI Interest Cash back Total

24% Subsidy Incentive Benefit
(7%)

(A) (B) (C) (D) (E) (D+E)

1 `746 `200 `946 `58 `100 `158
2 `761 `185 `946 `54 `100 `154
3 `776 `170 `946 `50 `100 `150
4 `791 `154 `945 `46 `100 `146
5 `807 `139 `946 `42 `100 `142
6 `823 `122 `945 `36 `100 `136
7 `840 `106 `946 `32 `100 `132
8 `856 `89 `945 `27 `100 `127
9 `874 `72 `946 `22 `100 `122
10 `891 `55 `946 `17 `100 `117
11 `909 `37 `946 `12 `100 `112
12 `927 `19 `946 `6 `100 `106
Total `10,001 `1,348 `11,349 `402 `1,200 `1,602
% w.r.t 100% 30% of 88% of 118%
interest Interest Interest

“Thus, the Maximum Cashback amount and the Interest subsidy amount would sum up to
`1,600 (`1,200 as cashback and `400 as interest subsidy), which is 118% of the total interest of
`1,348 on a loan of `10,000 with an interest rate of 24%”.

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 Annexure c
For effective coordination and implementation, a Steering Committee
will be constituted as indicated:

Sl. No. Designation Role

1 Secretary, HUA Chairperson

2 Secretary, MSME or his nominee Member

3 Secretary, DFS, or his nominee Member

4 ED, Deptt of Non-Banking Regulations, RBI Member

5 CMD, SIDBI Member

6 Principal Secretaries (UD/LSG) from three states to be Member

nominated by Minister, HUA

7 CEO, Indian Banks’ Association (IBA) Member

8 CEO, MFIN Member

9 ED, Sa-Dhan Member

10 Joint Secretary and Mission Director (DAY-NULM) Member Convenor

Note: Ministry may co-opt any other member as per need.

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Annexure d
For effective monitoring of the Scheme, the State/UT will have the
following committee:

Sl. No. Designation Role

1. Principal Secretary/ Secretary, Urban Development/ Chairperson
Municipal Administration
2. Principal Secretary/ Secretary, Finance Member
3. State Representative of RBI Member
4. State representative of SIDBI Member
5. Convenor of the State Level Bankers Committee (SLBC) Member
6. Up to 05 Municipal Commissioner(s)/ EO (s), to be invited Member (s)
on rotation basis
7. Up to 02 special invitees from NBFC/ MFI (nominated by Special Invitee
Chairperson)
8. Project Director - SUDA/ Mission Director - MEPMA Member Convenor

Annexure - E
Composition of City/ ULB level Committee to sponsor loan applications
and monitor implementation of the scheme is as under:

Sl.No. Designation Role

1. Municipal Commissioner (MC)/Executive Officer (EO) Chairperson
2. Lead District Manager (LDM) Member
3. Up to 03 non-official representatives of TVC/ provisional TVC, Member (s)
as nominated by the Municipal Commission/ EO
[Where even provisional TVC is not available, upto 3
members from street vendors association (s) in the town to
be nominated by the MC/EO]
4. Representative of NBFC/ MFI Member (s)
[One each to be nominated by MC/ EO]
5. Representative from CLF/ ALF Member
6. Project Officer DUDA/ MEPMA or equivalent officer from ULB Convenor

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 Notes

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Scheme Guidelines | 15
 Website: mohua.gov.in • Email: dir-nulm@gov.in

16 | Scheme Guidelines