PM SVANidhi
PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) has
completed six years as a flagship micro-credit and financial inclusion scheme
of the Ministry of Housing and Urban Affairs (MoHUA). PM Street Vendor’s
AtmaNirbhar Nidhi (PM SVANidhi) is a Central Sector Scheme launched in June
2020 by the Government of India to support street vendors affected by the
COVID-19 pandemic.It is implemented by the Ministry of Housing and Urban
Affairs (MoHUA) in collaboration with the Department of Financial Services
(DFS).The scheme has been extended till March 2030.
PM SVANidhi
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Objective: The scheme
aims to provide “Swarozgar, Svavlamban and Swabhimaan” (self-employment,
self-reliance and dignity) to street vendors.Its objective is not merely to provide
credit but also to promote financial security, social recognition, digital
inclusion and sustainable livelihood opportunities.It seeks to reduce
dependence on informal moneylenders who often charge exorbitant interest rates.
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Coverage: The scheme covers
street vendors engaged in the sale of goods, food items and services in urban
areas.It is the first dedicated micro-credit scheme for street vendors in
India.
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Financial Assistance:
Provides collateral-free working capital loans through three progressive
tranches: ₹15,000 (First Tranche), ₹25,000 (Second Tranche) and ₹50,000 (Third
Tranche).The scheme also provides credit guarantee support for the loans.
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Interest Subsidy and
Credit Incentives: Beneficiaries receive an interest subsidy of 7% per annum on
timely repayment.Timely repayment enables access to higher loan tranches and
improves creditworthiness.
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UPI-linked RuPay Credit
Card: Vendors successfully repaying eligible loan tranches can avail UPI-linked
RuPay Credit Cards with credit limits of up to ₹30,000.
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Digital Inclusion: The
scheme promotes digital transactions through cashback incentives of up to
₹1,600.It encourages the adoption of digital payment platforms and financial
literacy among street vendors.
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SVANidhi Se Samriddhi
(SSS): Under SVANidhi Se Samriddhi, beneficiary families are profiled and
linked with eight selected Central Government welfare schemes.The initiative
aims to provide a comprehensive social security net for street vendor
households.
Impact of PM SVANidhi
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Economic Empowerment: Nearly
95% of PM SVANidhi beneficiaries accessed formal institutional credit for the
first time, with around 30% later obtaining additional loans beyond the scheme,
reflecting improved creditworthiness.
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Income Enhancement:
Beneficiaries recorded an average annual income increase of nearly 20%,
indicating improved economic resilience and livelihood security.
¨
Digital and Financial
Inclusion: The scheme has integrated millions of street vendors into the formal
banking and digital payment ecosystem, enhancing financial literacy,
transparency, and access to financial services.
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Improvement in Household
Welfare: Independent assessments conducted in 2023 and 2025 found significant
improvements in housing stability, healthcare access, education, and nutrition
among beneficiary households.
¨ Social Inclusion: Women account for nearly 46% of beneficiaries, while around 70% belong to marginalized communities, demonstrating the scheme’s broad and inclusive outreach.
¨ Strengthening Urban Livelihoods: PM SVANidhi has improved business sustainability, supported micro-enterprises, strengthened local supply chains, and enhanced the integration of street vendors with Urban Local Bodies (ULBs).
