PM SVANidhi Scheme for Urban Street Vendors

GS II-SCHEMES

Introduction

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a micro-credit initiative introduced by the Government of India to support urban street vendors. A recent State Bank of India (SBI) study highlighted the scheme’s success, noting that 43% of beneficiaries are women street vendors.

Overview of the Scheme

• Launched in 2020 by the Ministry of Housing and Urban Affairs (MoHUA) during the COVID-19 pandemic.
• Aims to provide collateral-free working capital loans to urban street vendors.
• Loans are granted in a stepwise manner, with eligibility for higher amounts based on timely repayment:
  • ₹10,000 (First Loan)
  • ₹20,000 (Second Loan) (available after repayment of the first)
  • ₹50,000 (Third Loan) (available after clearing the second)
• The initiative has empowered small vendors and played a key role in promoting financial inclusion.

Encouraging Inclusive Entrepreneurship

The PM SVANidhi scheme has contributed to bridging economic and social barriers among urban micro-entrepreneurs by:

• Extending support to socially disadvantaged groups, with 75% of beneficiaries from non-general categories.
  • 44% of loans have been provided to Other Backward Classes (OBCs).
  • 22% of loans have been availed by Scheduled Castes (SCs) and Scheduled Tribes (STs).
• Targeting the working-age population, as 65% of beneficiaries fall within the 26-45 age group.
• Encouraging a shift towards digital transactions, especially among Jan Dhan account holders.
  • Around 9.5% of recipients who conducted fewer than 10 digital transactions have now moved towards a higher level of digital financial engagement.