PM SVANidhi: Empowering Street Vendors with Financial Support – Know the Eligibility, Benefits, Objectives, and Steps to Apply

Street vendors play a vital role in urban economies, adding vibrancy to city life while providing essential goods and services. However, the COVID-19 pandemic severely impacted their livelihoods, leaving millions struggling to make ends meet. Acknowledging their resilience and importance, the government launched the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) on June 1, 2020.

This initiative aims to provide street vendors with the financial support they need to rebuild their businesses and lead dignified lives. PM SVANidhi offers collateral-free loans, encourages digital transactions, and connects beneficiaries to other welfare schemes. It is more than just a financial program; it serves as a lifeline for millions working to overcome adversity.

Purpose and Objectives of PM SVANidhi

PM SVANidhi was introduced by the Ministry of Housing & Urban Affairs to extend collateral-free working capital loans to street vendors in urban and peri-urban areas. The scheme provides an initial loan of up to Rs 10,000 with a tenure of one year, allowing vendors to restart their businesses after the pandemic-induced disruptions.

The objectives of PM SVANidhi include:

• Collateral-Free Loans: An initial loan of Rs 10,000 is offered, with enhanced amounts of Rs 20,000 and Rs 50,000 available upon timely repayment.

• Interest Subsidy: Vendors are incentivized with a 7% annual interest subsidy on regular repayments.

• Rewards for Digital Transactions: Annual cashback of up to Rs 1,200 is provided to vendors for conducting prescribed digital transactions.

As of March 15, 2024, the PM SVANidhi scheme has achieved significant milestones, benefiting nearly 63 lakh street vendors, with 56% male and 44% female participants. Over 83.27 lakh loans amounting to Rs 11,127 crore have been disbursed. It has also promoted social inclusion, with 65% of beneficiaries belonging to SC/ST/OBC categories. Additionally, street vendors have received more than Rs 102.05 crore in cashback incentives for digital transactions. These accomplishments highlight the scheme’s success in fostering economic resilience and social empowerment among street vendors.

Benefits of the Scheme

PM SVANidhi goes beyond providing loans, integrating street vendors into the formal financial system and enabling access to other government benefits. These include free ration, gas connections, and healthcare under associated welfare schemes. The initiative helps address the socio-economic vulnerabilities of street vendors, many of whom migrate to cities for livelihood opportunities.

Incentives Provided:

• Interest Subsidy: A 7% annual subsidy on timely loan repayment.

• Loan Enhancement: On timely repayment, vendors can access larger loan amounts in subsequent tranches.

• Rate of Interest (RoI): Loans are offered by banks, NBFCs, and MFIs at rates of interest as per RBI norms for the respective category.

Cashback on Digital Transactions: Annual cashback of up to Rs 1,200 for undertaking prescribed digital transactions.

• Vendors can earn up to Rs 100 per month for specified digital transactions of Rs 25 or more.

• Digital payment aggregators like PayTM, Amazon Pay, and PhonePe collaborate to onboard street vendors, promoting digital inclusion.

• The transaction history created through digital payments helps build credit scores, enabling access to enhanced credit in the future.

Eligibility Criteria for PM SVANidhi

The scheme is accessible to street vendors vending in urban areas as of March 24, 2020. Vendors must meet one of the following criteria:

1. Possess a Certificate of Vending/Identity Card issued by Urban Local Bodies (ULBs).

2. Be identified in ULB surveys but lacking certificates; provisional certificates will be issued.

3. Vendors left out of ULB surveys or vending after the survey can secure a Letter of Recommendation (LoR) from ULBs or Town Vending Committees (TVCs).

4. Vendors from peri-urban/rural areas vending within ULB boundaries must also obtain an LoR.

Steps to Apply:

Applying for PM SVANidhi is straightforward, with three pre-application steps to ensure a smooth process:

1. Understand Loan Requirements: Ensure all required documents and information are ready.

2. Link Aadhaar to Mobile Number: A linked mobile number is essential for eKYC and accessing benefits.

3. Check Eligibility: Verify eligibility as per the scheme guidelines to streamline the application process.

Applications can be submitted directly on the PM SVANidhi portal or through nearby Common Service Centres (CSCs).

Socio-Economic Impact

PM SVANidhi scheme has transformed the lives of millions of street vendors by providing financial stability and integrating them into the formal economy. The initiative has helped vendors sustain their businesses, recover from pandemic-induced challenges, and access additional government welfare benefits.

Prime Minister Narendra Modi highlighted that the scheme not only connects beneficiaries to banks but also opens avenues for holistic development. By bridging the gap between marginalized communities and institutional support, PM SVANidhi embodies the vision of an inclusive and self-reliant India.

PM SVANidhi ensures holistic empowerment by providing collateral-free loans, incentivizing digital transactions, and linking vendors to government benefits. The initiative not only enables vendors to overcome the economic impacts of the pandemic but also paves the way for their integration into India’s growth story. As the government continues to prioritize inclusive development, PM SVANidhi continue its efforts to uplift the lives of the most vulnerable sections of society.