PM SVANidhi Scheme Completes Six Years of Implementation

The Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme completed six years of implementation. Since its launch in June 2020, the scheme has emerged as a major initiative for providing financial support, digital inclusion, and social security benefits to street vendors across urban India.

About PM SVANidhi Scheme:

PM SVANidhi is a Central Sector Scheme launched by the Government of India on 1 June 2020 under the Ministry of Housing and Urban Affairs (MoHUA). The scheme was introduced during the COVID-19 pandemic to provide affordable working capital loans to street vendors whose livelihoods were severely affected. It is implemented jointly by the Ministry of Housing and Urban Affairs and the Department of Financial Services.

Achievements in Six Years:

Over the past six years, more than 1.12 crore collateral-free loans worth over ₹17,800 crore have been disbursed to over 75.5 lakh street vendors across the country. The scheme has significantly expanded access to formal credit, with nearly 95% of beneficiaries receiving institutional credit for the first time.

Digital inclusion has been a major success of the scheme. More than 55 lakh beneficiaries have been onboarded onto digital platforms and have collectively conducted over 841 crore digital transactions worth nearly ₹8.96 lakh crore. Beneficiaries have also received around ₹800 crore through cashback incentives and interest subsidies.

Key Features of the Scheme:

The scheme provides collateral-free working capital loans in three progressive tranches:

First loan: ₹15,000

Second loan: ₹25,000

Third loan: ₹50,000

Vendors who repay their loans on time receive a 7% annual interest subsidy, cashback incentives on digital transactions, and are eligible for UPI-linked RuPay Credit Cards with a limit of up to ₹30,000.

Recent Developments

Recognizing the success of the initiative, the Union Cabinet approved the restructuring and extension of PM SVANidhi. The lending period of the scheme has been extended up to March 2030. The revamped scheme also includes enhanced digital incentives and greater access to formal financial services for vendors.

Significance of the Scheme

PM SVANidhi has helped reduce the dependence of street vendors on informal moneylenders, improved their creditworthiness, encouraged digital payments, and strengthened financial inclusion. The scheme aligns with the government's vision of promoting self-reliance (Atmanirbhar Bharat) and improving the livelihoods of workers in the informal sector.