The PM SVANidhi Scheme is a government-backed initiative that supports street vendors by offering affordable working capital loans. Launched to promote financial inclusion and self-reliance, the scheme aims to improve the livelihoods of vendors through formal credit access. This guide outlines the key features, objectives, loan process, eligibility criteria, and more to help you understand how the scheme works and how it can benefit you.
Latest News and Updates on PM SVANidhi
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the restructuring and extension of the PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme, extending the lending period beyond 31st December 2024 up to 31st March 2030, with a total outlay of Rs. 7,332 crore. The restructured scheme aims to benefit 1.15 crore street vendors, including 50 lakh new beneficiaries, and will be implemented jointly by the Ministry of Housing & Urban Affairs (MoHUA) and the Department of Financial Services (DFS). Key features include increased loan amounts in the first and second tranches (up to Rs. 15,000 and Rs. 25,000 respectively), provision of UPI-linked RuPay Credit Cards for vendors who have repaid the second loan, and digital cashback incentives up to Rs. 1,600 for retail and wholesale transactions. The scheme also focuses on entrepreneurship, financial literacy, digital skills, marketing, and hygiene training, along with holistic welfare initiatives under the ‘SVANidhi se Samriddhi’ programme. Since its launch on 1st June 2020, PM SVANidhi has disbursed over Rs. 13,797 crore to more than 68 lakh street vendors, facilitating 557 crore digital transactions worth Rs. 6.09 lakh crore. The extension of the scheme is expected to empower street vendors, enhance livelihoods, promote inclusive economic growth, and transform urban spaces into vibrant, self-sustaining ecosystems.
Launch of PM SVANidhi Credit Card
Prime Minister Shri Narendra Modi has launched the PM SVANidhi Credit Card in Thiruvananthapuram, aimed at providing street vendors, hawkers, and those working on footpaths across the country with immediate access to credit for their businesses. The credit card is linked with the PM SVANidhi Scheme and offers a reliable financial tool for vendors to meet emergent business and personal requirements. Beneficiaries can also enjoy digital cashback incentives on transactions, encouraging cashless payments and promoting financial inclusion. The initiative is part of the government’s broader efforts to empower street vendors, enhance their livelihoods, and enable sustainable growth through entrepreneurship, digital skills, and formal recognition of their contribution to the economy.
What is PM SVANidhi Yojana?
The PM SVANidhi Scheme, launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA), is a central-sector micro-credit initiative designed to support street vendors across India. It provides collateral-free working capital loans starting at Rs. 10,000, with subsequent loans of Rs. 20,000 and Rs. 50,000, along with a 7% interest subsidy. The scheme promotes digital adoption by offering cashback of up to Rs. 100 per month for digital transactions. PM SVANidhi aims to formalise the street vending sector, enabling vendors such as hawkers, thelewalas, and service providers such as barbers or cobblers to improve their economic standing. Loans may be used for business requirements, including purchasing raw materials, equipment, or paying rent, and are repayable over one year. No collateral or processing fee is required, making the scheme widely accessible. Eligible vendors include those with a Certificate of Vending, Identity Card, or a Letter of Recommendation from Urban Local Bodies. Applications may be submitted online via the PM SVANidhi portal or offline, with detailed guidance and support available through a toll-free helpline.
