PM SVANidhi Scheme, Objectives, Eligibility, Benefits, Highlights

PM SVANidhi Scheme (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) is a central sector scheme launched in June 2020 to support street vendors affected by the COVID-19 pandemic. The scheme provides affordable micro-loans of up to ₹10,000 to over 50 lakh street vendors who were operational on or before 24 March 2020. It covers vendors in sectors like textiles, apparel, artisan products, barbershops, laundry services, and other goods and services. The loans aim to help vendors restart and sustain their businesses, with the scheme running until March 2022. SIDBI (Small Industries Development Bank of India) acts as the technical partner for its implementation.

PM SVANidhi Scheme

The Union Cabinet has recently approved the restructuring and extension of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) beyond 31 December 2024. Originally launched on 1 June 2020, the scheme was designed to support street vendors who faced severe hardships during the COVID-19 pandemic.

PM SVANidhi Scheme is jointly implemented by the Ministry of Housing & Urban Affairs (MoHUA) and the Department of Financial Services (DFS). While MoHUA oversees the overall implementation, DFS facilitates access to loans and credit cards through banks, financial institutions, and their ground-level functionaries, ensuring street vendors can avail timely financial support to sustain and grow their businesses.

PM SVANidhi Scheme Objectives

• Provide Affordable Working Capital: The scheme ensures street vendors have access to low-cost loans, enabling them to restart and sustain their livelihood after disruptions such as the COVID-19 lockdown.
• Promote Digital Transactions: By rewarding vendors who use digital modes for loan repayment, the scheme encourages financial inclusion and adoption of digital payment systems.
• Encourage Timely Repayment: Vendors who repay loans regularly receive incentives like cash-back and higher loan limits on subsequent borrowings, promoting financial discipline and growth.

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PM SVANidhi Scheme Highlights

The PM SVANidhi Scheme provides financial support and capacity-building opportunities for street vendors affected by the COVID-19 pandemic. The table below summarizes its key features, eligibility criteria, benefits, and implementation mechanisms.

PM SVANidhi Scheme Important Facts

PM SVANidhi Scheme (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) is a central sector scheme launched in June 2020 to support street vendors affected by the COVID-19 pandemic. The table below highlights the scheme’s objectives, eligibility, loan features, incentives, and implementation framework.

PM SVANidhi Scheme Features

The PM SVANidhi scheme is designed to provide financial support and incentives to street vendors affected by the COVID-19 pandemic. The table below summarizes the PM SVANidhi Scheme Features, including loan amount, repayment benefits, interest subsidies, and digital payment incentives.

PM SVANidhi Scheme Leading Institutions

• Scheduled Commercial Banks
• Regional Rural Banks
• Cooperative Banks
• Non-Banking Financial Companies
• Micro-Finance Institutions
• Self-Help Groups (SHG) Banks

PM SVANidhi Scheme Eligibility Criteria

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) aims to provide financial support to street vendors affected by the COVID-19 pandemic. To avail the benefits of this scheme, applicants must meet certain criteria related to age, income, residence, and vending activity. The key PM SVANidhi Scheme Eligibility Criteria are summarized below:

PM SVANidhi Scheme New Rules for Beneficiaries

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme provides financial support to street vendors by offering collateral-free loans and additional benefits to promote digital literacy, financial inclusion, and entrepreneurship.

PM SVANidhi Scheme Benefits

• The PM SVANidhi Scheme allows vendors to obtain a working capital loan of up to ₹10,000, repayable in monthly installments over one year. 
• It encourages digital transactions by offering cashback of up to ₹100 per month. Vendors can also benefit from an increased credit limit if they repay their loans on time or early. 
• Additionally, an internet subsidy at the rate of 7% per annum is credited to beneficiaries’ bank accounts through Direct Benefit Transfer on a quarterly basis for timely or early repayments. Importantly, no penalty is charged for repaying the loan ahead of schedule.

Loans Under PM SVANidhi Scheme

Under the PM SVANidhi Scheme, vendors can avail working capital loans of up to ₹10,000, repayable in monthly installments over one year. No penalty is charged for early repayment of the loan. Additionally, for timely repayment, an interest subsidy of 7% per annum is credited to the vendor’s bank accounts through Direct Benefit Transfer every six months.