PM SVANidhi, Pg7

Key Highlights:

• The PM SVANidhi (Prime Minister Street Vendor's AtmaNirbhar Nidhi) scheme was launched on June 1, 2020, by the Ministry of Housing and Urban Affairs (MoHUA).
• It aims to provide collateral-free working capital loans to street vendors to help them restart and expand their businesses, particularly after the COVID-19 pandemic.
• The scheme offers a progressive loan facility in three tranches: an initial loan of up to ₹15,000, a second loan of up to ₹25,000, and a third loan of up to ₹50,000 upon timely repayment.
• As of June 2026, the scheme has benefited over 75 lakh (7.5 million) street vendors, with more than 1.12 crore (11.2 million) collateral-free loans disbursed.
• PM SVANidhi has been extended until March 31, 2030, to continue supporting the urban informal economy.

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Detailed Insights:

• The scheme is a Central Sector Scheme, meaning it is fully funded by the Government of India.
• Beneficiaries receive an interest subsidy of 7% per annum on timely or early repayment, credited quarterly to their bank accounts.
• It incentivizes digital transactions through cashback, with beneficiaries potentially earning up to ₹100 per month (₹1200 per year), and recent updates mention up to ₹1600.
• Eligibility requires street vendors to have been vending in urban areas on or before March 24, 2020, and possess a Certificate of Vending or a Letter of Recommendation from Urban Local Bodies (ULBs).
• The scheme provides credit guarantee coverage through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), protecting lending institutions against defaults.
• Initiatives like SVANidhi Se Samriddhi link beneficiaries and their families to various government welfare schemes, promoting holistic socio-economic upliftment.
• A UPI-linked RuPay Credit Card with a credit limit of ₹30,000 is introduced for vendors after successful repayment of the second loan tranche.
• The scheme aims to formalize street vendors, build their credit history, and promote financial and digital literacy among this unbanked demographic.

Key Concepts Involved:

• PM SVANidhi: A micro-credit scheme providing affordable working capital loans to street vendors.
• Collateral-free loans: Loans granted without requiring any security or asset as a guarantee.
• Financial Inclusion: Ensuring access to affordable financial products and services for all segments of society.
• Central Sector Scheme: A scheme fully funded and implemented by the Central Government.