PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi)

Introduction

Street vendors play a vital role in India's economy, yet they often struggle with financial challenges. To support them, the Government of India launched the PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) scheme in June 2020. This initiative provides collateral-free loans to help vendors restart and expand their businesses after the COVID-19 pandemic.

Objectives of PM SVANidhi

  • Provide collateral-free working capital loans to street vendors.
  • Promote digital transactions and financial inclusion.
  • Offer interest subsidies and incentives for timely repayment.

Key Features of PM SVANidhi

  1. Loan Amounts

    • ₹10,000 for first-time borrowers.
    • ₹20,000 for timely repayers.
    • ₹50,000 for vendors with a good repayment history.

  2. Interest Subsidy

    • 7% interest subsidy on timely repayments.
    • Credited to the vendor’s account every quarter.

  3. No Collateral Required

    • Loans are provided without any security deposit.

  4. Digital Transactions Incentive

    • Cashback of up to ₹1,200 per year for using digital payments.

  5. Repayment Flexibility

    • Loan tenure: 12 months with monthly installments.

Eligibility Criteria

  • Must be a street vendor operating before March 24, 2020.
  • Should possess a vendor certificate or identity proof from local authorities.
  • Vendors who are not registered can get a Letter of Recommendation (LoR) from municipal authorities.

How to Apply for PM SVANidhi?

  1. Online Application – Visit the PM SVANidhi portal (pmsvanidhi.mohua.gov.in).
  2. Fill Loan Application – Provide business details and documents.
  3. Verification – The application is verified by urban local bodies and banks.
  4. Loan Disbursement – Approved vendors receive funds directly in their bank accounts.

Benefits of PM SVANidhi

  • Easy access to credit for street vendors.
  • Encourages digital transactions, leading to better financial security.
  • Supports self-reliance (Atma Nirbhar Bharat) by providing financial stability.
  • Boosts local economies by empowering small vendors.

Conclusion

PM SVANidhi is a transformative initiative that empowers street vendors by providing essential financial aid and digital payment incentives. By supporting small businesses, the scheme strengthens India’s economy and promotes self-reliance.