PM SVANidhi Scheme

Objectives of the Scheme

Salient features of the Scheme

• To facilitate collateral-free working capital loans to street vendors to restart their businesses.
• Holistic development of street vendors by offering a reliable source of finance to support business expansion and opportunities for sustainable growth
• Promote financial inclusion, digital payments, and identity/recognition to street vendors

• Ministry: Ministry of Housing and Urban Affairs. 
• Launched in 2020 to support street vendors who faced unprecedented hardships during the COVID-19 pandemic. 
• Type: Central Sector Scheme. 
• 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. 
• Eligibility:
  • Identified Vendors: Street vendors holding a Certificate of Vending/Identity Card or those identified in ULB surveys (even if documents are pending).
  • Left-out & Peri-urban Vendors: Vendors missed in surveys, new entrants, or peri-urban/rural vendors operating within ULB limits, provided they possess a Letter of Recommendation from ULB/Town Vending Committee.
• Eligibility for state/UTs: States/UTs must have notified Rules under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
• Key Benefits: Working capital with Interest subsidy (7%) and Higher loan eligibility on timely/early repayment.
• Working capital Loan Tranches:
  • First tranche: up to ₹15,000.
  • Second tranche: up to ₹25,000.
  • Third tranche: unchanged at ₹50,000.
• Credit Guarantee: Provision for Graded Guarantee Cover for the loans sanctioned. It is administered by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• 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.
• SVANidhi se Samriddhi: Strengthened through monthly Lok Kalyan Melas for linking vendors with other welfare schemes. 
• Eligibility for ₹30,000 Credit Card: Street vendors who have successfully repaid the second tranche and those who have already availed the third tranche (whether active or repaid).