PM SVANidhi Scheme

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a specialized micro-credit facility launched by the Ministry of Housing and Urban Affairs to empower street vendors across India. Recognizing that street vendors represent a vital part of the urban informal economy, this scheme was designed to provide them with access to formal credit to restart their businesses, which were significantly impacted by the economic disruptions of the pandemic. The scheme offers an initial working capital loan of up to ₹10,000, which is repayable in monthly installments over a period of one year. One of the unique features of this scheme is the incentive for financial discipline; vendors who repay their loans on time are eligible for an interest subsidy of 7% per annum. This subsidy is credited directly to the borrower's bank account through Direct Benefit Transfer on a quarterly basis. Furthermore, there is no penalty for early repayment of the loan. The scheme also promotes digital transactions by offering monthly cash-back incentives to vendors who accept payments through digital modes, thereby integrating them into the formal digital economy. As vendors demonstrate a good repayment history, they become eligible for higher loan tranches in the subsequent cycles, such as ₹20,000 and ₹50,000, promoting business scaling. The application process is streamlined to be vendor-friendly, allowing individuals to apply through Urban Local Bodies or dedicated web portals and mobile apps. By providing collateral-free loans at affordable rates, PM SVANidhi aims to foster self-reliance among vendors, improve their credit profiles, and ensure their long-term socio-economic upliftment within the urban landscape of India.