Launched in September 2013 by the Ministry of Housing & Urban Affairs, DAY-NULM is a major scheme that aims to reduce poverty and vulnerability among the urban poor. It helps people gain self-employment or skilled wage employment through training, subsidised loans, and livelihood support.
DAY-NULM follows a multi-directional approach that includes:
- Setting up City Livelihood Centres for training and job placement
- Forming self-help groups (SHGs) and area-level federations
- Offering interest-subsidised loans to support small businesses
- Providing shelter homes for the urban homeless
- Supporting street vendors with facilities, training, credit, and market links
Objectives of the DAY-NULM scheme
- Help the urban poor access steady self-employment or wage employment
- Strengthen SHGs and other local groups for collective economic growth
- Set up shelters with essential services for the homeless in phases
- Support street vendors with social security, training, infrastructure, and financial services
Mission of DAY-NULM scheme
The mission focuses on reducing urban poverty and vulnerability. It supports the urban poor through skill development, stronger community institutions, better market access, and shelter facilities, with an emphasis on sustainable livelihoods.
Features of DAY-NULM scheme
- Skill training through City Livelihood Centres based on market needs
- Formation and support of SHGs and their federations
- Subsidised loans (5%–7%) for individual or group micro-enterprises
- Infrastructure support and credit access for street vendors
- Shelter facilities for homeless people in urban areas
Components of DAY-NULM scheme
The main components of DAY-NULM include:
- Employment through Skills Training and Placement (EST&P)
- Self-Employment Programme (SEP)
- Social Mobilisation and Institution Development (SM&ID)
- Support to Urban Street Vendors (SUSV)
- Shelter for Urban Homeless (SUH)
- Capacity Building and Training (CBT)
- Innovative and Special Projects (ISP)
Guiding principles and values of DAY-NULM scheme
DAY-NULM works on the belief that the urban poor are capable of driving their own development. It highlights building strong local institutions, improving skills, coordinating with other government schemes, and promoting transparency, accountability, and community self-reliance.
Need for DAY-NULM scheme
Urban poverty in India includes issues like lack of shelter, social exclusion, and unstable livelihoods. DAY-NULM tackles these problems through training, access to credit, institutional support, and shelters, helping create inclusive urban growth.
Sub-schemes of the DAY-NULM scheme
The mission includes the following sub-schemes:
- Innovative and Special Projects (ISP)
- Self-Employment Programme (SEP)
- Support to Urban Street Vendors (SUSV)
- Capacity Building and Training (CBT)
- Social Mobilisation and Institution Development (SM&ID)
- Shelter for Urban Homeless (SUH)
- Employment through Skills Training and Placement (EST&P)
Benefits of the DAY-NULM scheme
- Financial assistance for skill training
- Formation and credit support for SHGs and federations
- Subsidised loans (5%–7%) for individuals and groups starting micro-enterprises
- Infrastructure and shelter facilities for street vendors and homeless people
- Better access to formal credit, markets, and social security for vulnerable groups
Conclusion
DAY-NULM is a wide-ranging programme designed to reduce urban poverty. It provides livelihood opportunities, skills training, community support, access to credit, and shelter facilities. It is especially beneficial for street vendors, women in SHGs, and homeless individuals by promoting both community strength and long-term livelihood security.
For small entrepreneurs looking to grow, taking a business loan can be an important step. Tools like a business loan eligibility calculator can help estimate loan options easily. It is also useful to stay updated on the current business loan interest rates offered by different lenders to make informed financial decisions.
