Launched by the Ministry of Housing and Urban Affairs on June 1, 2020, the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme aims to support small street vendors with affordable working capital loans.

The initiative was introduced to help vendors restart their businesses after the Covid-19 lockdowns and strengthen their income sources. The scheme remained open for beneficiaries until March 24, 2022.

Key Takeaways

• Launched to help street vendors recover after Covid-19.
• Provides collateral-free working capital loans up to Rs 10,000.
• Around 5 million vendors targeted under the scheme.
• Over 2 million applications received; 7.5 lakh sanctioned and 2.1 lakh loans disbursed.
• Includes interest subsidies, cashback rewards, and credit limit benefits.

PM SVANidhi : Steps for Application

Vendors can apply through the PM SVANidhi portal or at a Common Service Centre (CSC) nearby. The process includes a few steps before filling the application form.

Pre-application checks:

1. Review and understand all loan application requirements.
2. Ensure the mobile number is linked to Aadhaar.
3. Confirm eligibility as per scheme guidelines.

According to the official data, the ministry planned to offer loans up to Rs 10,000 without any collateral to small vendors across India. This move aimed to ensure that self-employed individuals could resume business without financial burden.

Eligibility Criteria

1. The applicant must be a street vendor holding a Certificate of Vending or ID card issued by the Urban Local Bodies (ULBs).
2. Vendors listed in the ULB survey but lacking certification will receive one within a month.
3. Vendors who started business after the survey can apply if they have a Letter of Recommendation from the ULB or Town Vending Committee (TVC).
4. Vendors operating within ULB limits are also eligible if they hold a valid Letter of Recommendation.

This scheme has been one of the key financial inclusion steps by the government, aimed at giving financial independence to small vendors who form the backbone of India’s urban economy.

Incentives

1. Interest subsidy of 7% per year for those who repay loans on time.
2. Annual cashback of Rs 1,200 for regular digital transactions.
3. Opportunity to increase the credit limit through timely or early repayment.
4. No penalty will be charged for early repayment.

These incentives were introduced to encourage digital payments and promote responsible borrowing among vendors.