Digitalisation of Working Capital Loans under
PM SVANidhi Scheme

Mission

To achieve end-to-end digital and assisted Straight-Through Processing (STP) flow of credit under the PM SVANidhi Scheme for street vendors.

Paperless
Process

Reduced
TAT

Reduced
Costs

Street vendors are a critical constituent of the Indian urban economy. Given the hardships they faced during the COVID-19 pandemic, the government launched the PM SVANidhi scheme to provide working capital loans to street vendors, helping them resume business. With over 41% of street vendors being women, we at RBIH undertook to digitalise the credit flow process to ensure they have the means to obtain convenient and affordable credit at the click of a button, to help grow their businesses and become self-reliant.


We started by understanding key issues of the process:

  • High Turnaround Time (TAT) of up to 26 days.
  • Potential Income Loss from multiple visits to Banks.

Solution for Digitalisation of Loans under
PM SVANidhi Scheme

We are working with industry partners to digitalise the lending process, right from application to disbursement, to address the main pain points faced by street vendors. Here’s a summary of the project lifecycle:

Analysis and Planning:

Auditing the existing loan processes to identify pain points and formulate a digital solution.

Development:

Building a digital solution, including the design and implementation of a front-end platform for onboarding loan applications and automating sanctions and approvals.

Testing and Refinement:

Ensuring efficiency, security, and ease of use with rigorous testing and continual feedback from stakeholders.

Implementation and Rollout:

Initiating a pilot project in partnership with banks to evaluate adoption, and leverage learnings for implementation at scale.

Problem Statement / Problem identified:

In India, women often face barriers to saving money due to various reasons such as lack of financial literacy, limited access to banking services, and complex user interfaces of existing savings applications. These challenges make it difficult for women to save money effectively and efficiently.

Proposed Project Phase:

We propose the implementation of an improved UI/UX for the Frictionless Savings App. Our primary objective is to create a user-friendly and intuitive interface tailored to the specific savings needs and preferences of women. By simplifying the savings process and incorporating features that promote financial literacy and empowerment, we aim to encourage regular saving habits among women.

Conclusion:

The Frictionless Savings Product for Women project strives to impact and enhance women’s saving practices in India. By designing an intuitive and women-friendly user experience, we aim to provide women with a technological means to take more control over their financial futures and help them achieve their family’s long-term financial goals.
Through this pilot, we are attempting to reduce the turnaround time for the entire process of applying and receiving working capital loans under the PM SVANidhi from the current 26 days to as little as half an hour, to help ensure quick and hassle-free financial assistance to women street vendors.

Project Partners

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