PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme

Objectives

Salient Features

• Holistic development of street vendors by offering a reliable source of finance to support business expansion and opportunities for sustainable growth.
• Provide working capital loans.
• Promote financial inclusion, digital payments, and identity/recognition to street vendors.

• Background: Initially launched in 2020 to support street vendors who faced unprecedented hardships during the COVID-19 pandemic. 
• Type: Central Sector Scheme.
• Ministry: Ministry of Housing and Urban Affairs.
• Implementation: Jointly by Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS).
  • DFS responsible for facilitating access to loan/ credit cards through banks/financial institution and their ground level functionaries.
• Total outlay: ₹7,332 crore
• Target Beneficiary: Street Vendors engaged in vending in urban areas on/ before 24 March 2020.
  • Restructured scheme aims to benefit 1.15 crore beneficiaries including 50 lakh new beneficiaries. 
• Key Benefits: Working capital with Interest subsidy (7%) and Higher loan eligibility on timely/early repayment.
• New Features:
  • Enhanced Working capital Loan Tranches:
    • First tranche: up to ₹15,000 (up from ₹10,000).
    • Second tranche: up to ₹25,000 (up from ₹20,000).
    • Third tranche: unchanged at ₹50,000.
  • Digital Access: Introduction of UPI-linked RuPay Credit Card after repayment of second loan.
  • Digital Push: Up to ₹1,600 cashback incentives for  street vendors for retail & wholesale transactions. 
  • Coverage Expansion: From statutory towns to census towns and peri-urban areas etc. in graded manner.
  • Capacity Building: Training in entrepreneurship, financial literacy, digital skills, marketing.
    • Special training on hygiene and food safety for street food vendors (with FSSAI).
  • SVANidhi se Samriddhi: Strengthened through monthly Lok Kalyan Melas for linking vendors with other welfare schemes.