PM SVANidhi (PM Street Vendor’s AtmaNirbhar Nidhi)

PM SVANidhi is a flagship micro-credit program launched by the Ministry of Housing and Urban Affairs to provide financial support to street vendors who were severely impacted by the COVID-19 pandemic. The scheme aims to facilitate collateral-free working capital loans to help vendors resume their businesses and climb the economic ladder. Initially designed to provide a first loan of up to ₹10,000, it has since been expanded to include subsequent tranches of ₹20,000 and ₹50,000 upon timely repayment of earlier loans. A key highlight of this scheme is the 7% interest subsidy provided to beneficiaries who make regular repayments, which is credited directly to their bank accounts. Additionally, the scheme promotes digital literacy and financial inclusion by offering monthly cashback incentives for vendors who accept digital payments. This initiative not only provides immediate liquidity but also helps street vendors build a formal credit history, making them eligible for larger loans in the future. By integrating vendors into the formal financial ecosystem, PM SVANidhi empowers small-scale entrepreneurs across urban, semi-urban, and rural areas. The application process is streamlined through a dedicated portal and mobile app, ensuring minimal documentation and fast processing times. Over several years, the scheme has expanded its reach to ensure that even those left out of traditional banking systems can access affordable credit to sustain their families and grow their micro-enterprises. It represents a significant step toward making India's informal workforce self-reliant and financially secure.