What is PM SVANidhi – PM Street Vendor’s AtmaNirbhar Nidhi?

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched in June 2020 amid the Covid-19 pandemic. This micro-credit facility offers street vendors a collateral-free loan of Rs. 10,000 with low interest rates for a maximum period of one year.

Since its launch, the scheme has received more than 31 lakh applications from across India. Of the total applications, more than 16 lakh have been sanctioned and more than 12 lakh have been granted the loan.

Why was the PM SVANidhi scheme rolled out?

The COVID-19 pandemic and the subsequent nationwide lockdown affected daily wage workers and street vendors as most were out of work. The scheme was launched as an aid for such vendors to be financially stable. In the long term, it targets the establishment of a credit score for vendors and setting up a digital record of the applicant’s socioeconomic status. This is projected to help them in availing the Central government schemes in the future. The scheme’s objective is to formalize the informal sector and provide them with various safety nets while offering various means of availing of loans.

Who can avail of this loan?

All street vendors who were involved in roadside businesses in urban, pre-urban and rural areas on or before 24 March 2020 are eligible to apply for this loan.

Who will identify the beneficiaries?

The Urban Local Bodies (ULBs) of the Town Vending Committees (TVCs) are responsible for identifying the beneficiaries. The street vendors should show the certificate of vending/identification issued by ULBs to avail of this loan.