HDFC Bank Debuts Micro-credit Facility for PM SVANidhi Scheme With CSCs

PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi), a specific micro-credit facility for street vendors, has been launched by HDFC Bank in collaboration with Common Service Centres (CSC). This is a cornerstone initiative of the Indian government, based on the Atmanirbhar Bharat regulations.

The bank has said in an official statement that it "would facilitate PM SVANidhi for its Village Level Entrepreneurs (VLEs) on the Digital Sewa Portal where vendors can complete the entire process online. It is a collateral-free affordable loan of Rs 10,000 with an interest subsidy of 7%. It's a simple application. VLEs must understand the loan application requirements, ensure the mobile number is linked to the Aadhaar and check the eligibility status of their application as per the scheme rules. This will help street vendors resume their businesses and boost the business cycle."

"Through the launch of PM SVANidhi, at HDFC Bank we will be able to provide special micro-credit facility to small street vendors through our CSC VLEs for their holistic development and economic upliftment," said Ms. Smita Bhagat, Country Head GIB, CSC, E-Commerce, Start-ups & Inclusive Banking Initiatives Group, HDFC Bank. "Our CSC VLEs will facilitate street vendors around their centers in availing credit without hindrance while assisting them in resuming livelihoods post-Covid 19 lockdowns. It is another opportunity for our VLEs to serve every business requirement in the country well as an avenue for earning incentives," said Dr. Dinesh Tyagi, Managing Director, CSC SPV.

He further added in the virtual launch event that "At present, we have over 50 lakh street vendors and our VLEs are widely spread to cater to them. They must capitalize on this network strength for facilitating small ticket loans of Rs 10,000 for the vendors along with this VLEs should identify opportunities for other products and maximize their incentives. Every VLE must immediately scope their areas and start talking about this flagship yojana of the GOI. Our VLEs will play a significant role in reviving small scale businesses post-Covid 19 with this product."

HDFC Bank is among India's most well-known private sector banks, with 5,653 branches and 16,291 ATMs spread over 2,917 cities and towns.