The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme is a government initiative aimed at providing financial and technical support to street vendors across India. Launched on 1st June 2020, the scheme was introduced during the COVID-19 pandemic to help street vendors restore their livelihoods after disruptions caused by lockdowns and restrictions.
What is the PM SVANidhi Scheme?
The PM SVANidhi Scheme is a Central Sector Scheme, meaning it is fully funded by the Government of India. Its main objective is to provide working capital loans to street vendors without requiring any collateral, enabling them to restart or sustain their small businesses.
The scheme specifically targets urban street vendors, including those in structured urban towns, census towns, peri-urban areas, and other underserved urban clusters.
Aim of the PM SVANidhi Scheme
The main aim of the Pm SVAnidhi scheme are as follows:
- Formalize street vendors, integrating them into the urban economy
- Open new opportunities for vendors to move up the economic ladder
- Support the urban informal economy, ensuring goods and services are available at affordable rates
- Promote digital transactions among vendors to improve financial inclusion
Street vendors play an essential role in the urban economy and are known by different names such as hawkers, thelewala, rehriwala, theliphadwala, depending on the region. They supply goods like vegetables, fruits, ready-to-eat food, tea, bread, eggs, apparel, footwear, artisan products, books/stationery, and services like barber shops, cobblers, pan shops, and laundry services.
Key Features of the PM SVANidhi Scheme
The key features of the PN SVAnidhi scheme are as follows:
| Feature | Details |
| Collateral-Free Loans | Loans provided without collateral; can be used for inventory, stall management, or raw materials. |
| Loan Structure | – 12-month loan: ₹15,000 (earlier ₹10,000) – 18-month loan: ₹25,000 (earlier ₹20,000) – 36-month loan: ₹50,000 (no change) – Early repayment: No penalty; timely repayment makes vendors eligible for higher loans. |
| Interest Subsidy | 7% subsidy on on-time repayment, credited directly via DBT semi-annually. |
| Digital Transactions Incentives | Cashback of ₹1,600 for using digital methods like UPI, QR codes, etc. |
| Credit Facility Enhancement | On-time repayment makes vendors eligible for additional credit, including a UPI-linked credit card for urgent business needs. |
Recent Updates and Restructuring of PM SVANidhi Scheme
The details about the recent updates related to the PM SVANidhi Scheme are as follows:
- Extension: Initially ending on 31st December 2024, the scheme has now been extended until 31st March 2030.
- Budget Allocation: The total outlay for the extended scheme is ₹7,332 crore.
- Beneficiaries: The scheme aims to support 1.15 crore street vendors, including 50 lakh new beneficiaries.
- Joint Implementation:
- Overall coordination by the Ministry of Housing and Urban Affairs
- Loan and credit supervision by the Department of Financial Services
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Geographic Coverage of the PM SVANidhi Scheme
Initially, the scheme covered only urban structured towns, now it includes:
- Census towns
- Peri-urban areas
- Other urban clusters
This expansion ensures that vendors in semi-urban and rural-adjacent areas also receive support.
Training and Capacity Building Under PM SVANidhi Scheme
PM SVANidhi not only provides financial aid but also focuses on capacity building for street vendors:
- Entrepreneurship Development
- Financial Literacy
- Digital Skills
- Marketing Skills
- Food Safety and Hygiene in partnership with the Food Safety and Standards Authority of India (FSSAI)
Vendors and their families can also participate in monthly welfare camps under the SVANidhi se Samriddhi Campaign, which offers access to government benefits like health insurance and social welfare schemes.
Participating Financial Institutions Under PM SVANidhi Scheme
Various financial institutions participate in disbursing loans under the scheme, including:
- Scheduled Commercial Banks
- Regional Rural Banks
- Small Finance Banks
- Cooperative Banks
- Non-Banking Financial Companies (NBFCs)
- Micro Finance Institutions
- Self-Help Group Banks
FAQs
It was launched on 1st June 2020 by the Ministry of Housing and Urban Affairs.
Street vendors possessing a Certificate of Vending/Identity Card or identified by ULBs are eligible.
The scheme aims to formalize street vending and support vendors to improve their economic status.
Certificates are issued by Urban Local Bodies (ULBs) or Town Vending Committees (TVCs).
It formalizes street vending, supports the urban informal economy, and promotes financial inclusion.
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