PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi)

Overview

Launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA), the PM SVANidhi Scheme is a Central Sector Scheme that provides collateral-free working capital loans to street vendors in urban areas. It was designed as part of the post-COVID-19 recovery to help street vendors restart their businesses, ensuring financial inclusion and improving their livelihoods.

Objectives

• To provide affordable working capital loans to street vendors.

• To promote digital transactions and build credit history for vendors.

• To empower street vendors by linking them to formal financial institutions.

• To ensure long-term financial inclusion and self-reliance.

Key Features of PM SVANidhi

1. Eligibility

1. Street vendors operating in urban areas.

2. Vendors identified in the survey of Urban Local Bodies (ULBs) or holding a Certificate of Vending/Identity Card.

3. In case a vendor is left out of the survey, they can still apply with recommendation letters from ULBs or Town Vending Committees.

2. Loan Facility

• Initial Loan: Up to Rs.10,000, repayable in 12 months.

• Second Loan: Up to Rs. 20,000 on timely repayment of the first loan.

• Third Loan: Up to Rs. 50,000 after repayment of the second loan.

• No collateral required.

3. Interest Subsidy

• 7% per annum interest subsidy.

• Credited quarterly into the vendor’s account.

• Helps reduce effective cost of borrowing.

4. Digital Transaction Incentives

• Street vendors are encouraged to use UPI and digital wallets.

• Monthly cashback of ₹50 to ₹100 based on the number of transactions.

5. Credit Score & Financial Inclusion

• Timely repayment builds the vendor’s credit profile.

• Enables access to higher loans in the future.

• Integrates vendors into the formal economy.

6. Impact of the scheme

• Benefitted over 50 lakh street vendors across India.

• Helped vendors restart businesses affected by the pandemic.

• Increased adoption of digital payments at grassroots levels.

• Created a reliable credit history for vendors previously excluded from formal banking.