PM SVANidhi Scheme (2020)

PM SVANidhi provides collateral-free loans, subsidies, and digital incentives to support street vendors’ livelihoods and inclusion.
PM SVANidhi

PM SVANidhi Scheme (2020): Financial Support for Street Vendors

UPSC Relevance: Govt. Schemes (Prelims)
Source: Zee News

Introduction

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme was launched on June 1, 2020, by the Ministry of Housing and Urban Affairs (MoHUA). Its aim is to provide affordable, collateral-free working capital loans to street vendors so that they can revive and sustain their livelihoods, especially after the COVID-19 impact.


Key Features

  • Collateral-free Loans:
    • 1st loan: ₹10,000
    • 2nd loan: ₹20,000 (on timely repayment)
    • 3rd loan: ₹50,000 (on timely repayment)
  • Subsidy: 7% annual interest subsidy on timely repayment.
  • Digital Incentives: Cashback up to ₹1,200 per year for digital transactions.
  • No Prepayment Charges: Loans can be closed early without penalty.
  • Focus on Formalisation: Encourages vendors to use digital payments, improving financial inclusion.

Eligibility Criteria

Street vendors can apply if they fall under any of these categories:

  1. Vendors with a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs).
  2. Vendors identified in ULB surveys but lacking vending certificates/ID cards.
  3. Vendors excluded from surveys or who started vending later, but with a Letter of Recommendation (LoR) from ULB/Town Vending Committee (TVC).
  4. Vendors from peri-urban/rural areas within ULB limits, holding an LoR.

Documents Required

For Vendors with Certificate/ID (Category A & B)

  • Certificate of Vending
  • Vendor Identity Card

For Vendors with LoR (Category C & D)

  • Letter of Recommendation (LoR) from ULB/TVC
  • KYC Documents (Aadhaar, Voter ID, DL, MNREGA Card, or PAN)
  • Bank Account details/Passbook
  • Any proof confirming vendor status

For Second Loan

  • Loan closure document of the first loan

How to Apply

  1. Visit the official website: pmsvanidhi.mohua.gov.in
  2. Click Login → Applicant.
  3. Enter mobile number, captcha → Generate OTP.
  4. Select Vendor Category and enter Survey Reference Number (SRN).
  5. Fill out the application form and submit.

Applications are processed online, ensuring transparency and ease of access for vendors.


Significance

  • Promotes financial inclusion and digital literacy.
  • Provides social security and formal recognition to street vendors.
  • Strengthens the urban informal economy, which is crucial for livelihoods and local markets.

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