Bharatwiki Socrates: Created page with "{{Short description|Indian micro-credit scheme for urban street vendors}} {{Infobox government program | name = PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) | type = Central Sector Scheme | country = India | minister = Ministry of Housing and Urban Affairs | launched = {{start date|2020|06|01}} | status = Active | funding = {{INR}}7,332 crore | website = {{URL|https://pmsvanidhi.mohua.gov.in}} }} '''PM Street Vendor..."

2026-10-14T10:00:39Z

Created page with "{{Short description|Indian micro-credit scheme for urban street vendors}} {{Infobox government program | name = PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) | type = Central Sector Scheme | country = India | minister = Ministry of Housing and Urban Affairs | launched = {{start date|2020|06|01}} | status = Active | funding = {{INR}}7,332 crore | website = {{URL|https://pmsvanidhi.mohua.gov.in}} }} '''PM Street Vendor..."

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{{Short description|Indian micro-credit scheme for urban street vendors}}
{{Infobox government program
| name = PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi)
| type = Central Sector Scheme
| country = India
| minister = [[Ministry of Housing and Urban Affairs]]
| launched = {{start date|2020|06|01}}
| status = Active
| funding = {{INR}}7,332 crore
| website = {{URL|https://pmsvanidhi.mohua.gov.in}}
}}

'''PM Street Vendor's AtmaNirbhar Nidhi''' ('''PM SVANidhi''') is a [[Central Sector Scheme]] launched by the [[Government of India]] on 1 June 2020 to provide collateral-free [[working capital]] loans to urban [[street vendor]]s affected by the [[COVID-19 pandemic in India|COVID-19 pandemic]].<ref name="faqs">{{cite web |title=FAQs on PM SVANidhi Scheme |publisher=Ministry of Housing and Urban Affairs, Government of India |url=https://www.mohua.gov.in/static/uploads/2026/07/12faf90fb59f6a4252ee02dd5f600bb9.pdf |access-date=14 October 2026}}</ref> It is the first micro-credit programme designed specifically for street vendors in India, and aims to bring them into the formal credit system while promoting digital transactions.<ref name="faqs" /> The scheme is jointly implemented by the [[Ministry of Housing and Urban Affairs]] (MoHUA) and the [[Department of Financial Services]] (DFS).<ref name="faqs" /> On 27 August 2025, the [[Union Cabinet]] approved a restructuring of the scheme and extended its lending period until 31 March 2030, with a total outlay of {{INR}}7,332 crore.<ref name="pmindia">{{cite web |title=Cabinet approves restructuring & extension of lending period beyond 31.12.2024 of PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme |publisher=Prime Minister's Office, Government of India |date=27 August 2025 |url=https://www.pmindia.gov.in/en/news_updates/cabinet-approves-restructuring-extension-of-lending-period-beyond-31-12-2024-of-pm-street-vendors-atmanirbhar-nidhi-pm-svanidhi-scheme/ |access-date=14 October 2026}}</ref>

== Background ==
Street vendors form a significant part of India's urban [[informal economy]], providing convenient access to goods and services close to people's doorsteps.<ref name="pib-backgrounder">{{cite press release |title=SVANidhi: Empowering Street Vendors |publisher=Press Information Bureau, Government of India |date=20 December 2025 |url=https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/12/doc20251220739401.pdf |access-date=14 October 2026}}</ref> They nevertheless face a range of constraints, including lack of formal recognition, limited access to formal credit, low levels of education and skills, and limited access to emerging market opportunities.<ref name="pib-backgrounder" /> Being unorganised and self-employed, street vendors and their families often lack linkages to [[social security]] and welfare schemes, which makes them vulnerable in difficult times.<ref name="pib-backgrounder" />

The [[Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014]] provides for the identification and regulation of street vendors by [[urban local bodies]], but does not itself extend credit.<ref name="faqs" /> The economic disruption caused by the COVID-19 pandemic and the ensuing lockdowns severely affected street vendors, who faced loss of income and working capital.<ref name="pib-backgrounder" /> PM SVANidhi was formulated to assist street vendors in overcoming these financial constraints and restarting their businesses.<ref name="pib-backgrounder" />

== Objectives ==
The scheme has the following objectives:<ref name="faqs" />
* To provide collateral-free working capital loans to urban street vendors.
* To promote digital transactions and [[financial inclusion]] among street vendors.
* To strengthen social protection and link beneficiaries' families to welfare schemes.
* To improve the livelihoods and economic stability of street vendors.

== Key features ==
=== Loan tranches ===
Under the scheme, street vendors are provided collateral-free working capital loans in three progressive tranches.<ref name="faqs" /> Following the 2025 restructuring, the tranche amounts were revised upwards:<ref name="pmindia" />
* '''First tranche:''' Up to {{INR}}15,000 (increased from {{INR}}10,000), repayable in 12 monthly instalments.
* '''Second tranche:''' Up to {{INR}}25,000 (increased from {{INR}}20,000), repayable in 18 monthly instalments.
* '''Third tranche:''' Up to {{INR}}50,000, repayable in 36 monthly instalments.

Repayment of one tranche makes a vendor eligible for the next higher tranche.<ref name="pib-streetvendors">{{cite press release |title=Street Vendors under PM SVANidhi |publisher=Press Information Bureau, Government of India |date=27 July 2026 |url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=2289997 |access-date=14 October 2026}}</ref> As per the PM SVANidhi portal, the average time taken to sanction a loan is 23 days.<ref name="pib-implementation">{{cite press release |title=Implementation of PM-SVANidhi Scheme |publisher=Press Information Bureau, Government of India |date=23 July 2026 |url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=2288503 |access-date=14 October 2026}}</ref>

=== Interest subsidy ===
Beneficiaries are eligible for an [[interest subsidy]] of 7 per cent per annum on timely or early repayment of the loan.<ref name="faqs" /> The subsidy is credited directly into the bank accounts of the beneficiaries through the PM SVANidhi portal.<ref name="pib-backgrounder" />

=== Digital incentives ===
To promote digital transactions, the scheme provides cashback incentives:<ref name="faqs" />
* A cashback of ₹1 per digital transaction, up to a maximum of {{INR}}100 per month, for up to 12 months for each loan tranche.
* Under the restructured scheme, a cashback of up to {{INR}}100 per quarter for four quarters for wholesale digital purchases of at least {{INR}}2,000 (maximum {{INR}}400).

The total cashback incentive available to a beneficiary under the restructured scheme is up to {{INR}}1,600.<ref name="pmindia" />

=== UPI-linked RuPay Credit Card ===
Under the restructured scheme, vendors who have successfully repaid the second loan tranche are eligible for a [[UPI]]-linked [[RuPay]] credit card with a limit of up to {{INR}}30,000.<ref name="pmindia" /> The card was launched on 23 January 2026.<ref name="pib-implementation" />

=== SVANidhi se Samriddhi ===
The 'SVANidhi se Samriddhi' component, launched on 4 January 2021, undertakes socio-economic profiling of beneficiaries and their families to link them with eight selected Central Government welfare schemes, creating a holistic social security net.<ref name="pib-sss">{{cite press release |title='SVANidhi se Samriddhi' launched in additional 126 cities |publisher=Press Information Bureau, Government of India |date=12 April 2022 |url=https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1816139 |access-date=14 October 2026}}</ref> The eight schemes include the [[Pradhan Mantri Jeevan Jyoti Bima Yojana]], [[Pradhan Mantri Suraksha Bima Yojana]], [[Pradhan Mantri Jan Dhan Yojana]], and [[Pradhan Mantri Shram Yogi Maandhan]].<ref name="pib-achievements">{{cite press release |title=Achievements and Socio-Economic Impact under the PM SVANidhi Scheme |publisher=Press Information Bureau, Government of India |date=10 August 2026 |url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=2297255 |access-date=14 October 2026}}</ref> As of 12 July 2026, socio-economic profiling was completed for 50.63 lakh beneficiaries and 1.06 crore family members, with a total of 1.56 crore scheme sanctions extended to them.<ref name="pib-streetvendors" />

=== Capacity building ===
The scheme includes capacity-building initiatives focusing on entrepreneurship, financial literacy, digital skills, and marketing.<ref name="pmindia" /> Standard hygiene and food safety training is conducted for street food vendors in partnership with the [[Food Safety and Standards Authority of India]] (FSSAI).<ref name="faqs" />

== Eligibility and coverage ==
To be eligible for the scheme, a beneficiary must be a street vendor engaged in vending articles, goods, wares, food items, or merchandise of everyday use, or offering services to the public in a street, lane, sidewalk, footpath, pavement, public park, or other public place.<ref name="faqs" /> The beneficiary must be at least 18 years of age.<ref name="faqs" /> The identification of street vendors is carried out by States and Union Territories through surveys conducted under the provisions of the Street Vendors Act, 2014.<ref name="pib-implementation" />

The scheme is implemented across all States and Union Territories, covering eligible street vendors in all Urban Local Bodies (ULBs).<ref name="faqs" /> Under the restructured scheme, coverage is being expanded in a phased manner beyond statutory urban areas to include census towns, peri-urban areas, and other areas.<ref name="pib-implementation" />

== Implementation ==
The scheme is implemented through an end-to-end digital platform, the PM SVANidhi portal, developed by the [[Small Industries Development Bank of India]] (SIDBI).<ref name="pib-backgrounder" /> Applications are submitted through the portal or mobile app, or through Common Service Centres (CSCs) and Urban Local Bodies.<ref name="faqs" /> The DFS facilitates access to loans and credit cards through banks and financial institutions, while MoHUA is responsible for administration and approvals.<ref name="faqs" />

== Progress and impact ==
As of 12 July 2026, 76.95 lakh street vendors had availed over 1.15 crore loans amounting to {{INR}}18,475.06 crore under the scheme.<ref name="pib-streetvendors" /> Of these, 29.71 lakh vendors had availed the second tranche and 8.49 lakh vendors had availed the third tranche.<ref name="pib-streetvendors" /> More than 55 lakh beneficiaries had been onboarded onto digital platforms, conducting over 841 crore digital transactions worth nearly {{INR}}8.96 lakh crore.<ref name="pib-backgrounder" /> Beneficiaries had received nearly {{INR}}800 crore through digital cashback incentives and interest subsidies.<ref name="pib-backgrounder" />

Impact assessment studies conducted by the [[Indian School of Business]] (ISB), Hyderabad, in 2023 and 2025 found that:<ref name="pib-streetvendors" />
* PM SVANidhi was the first loan from a bank for 95 per cent of beneficiaries.
* The average annualised business income among borrowers grew by around 20 per cent between 2023 and 2025.
* Around 30 per cent of borrowers across all cycles reported holding loans other than PM SVANidhi loans, indicating the scheme's role in building credit histories.
* Adoption of digital payments among street vendors rose significantly between 2023 and 2025.
* The scheme enabled vendor families to improve living conditions, strengthen food security, enhance access to healthcare, and support children's education.

The scheme has received national recognition, winning the Prime Minister's Award for Excellence in Public Administration (2023) for Innovation (Central Level) and the Silver Award for Excellence in Government Process Re-engineering for Digital Transformation (2022).<ref name="pmindia" />

== Criticism and challenges ==
A 2026 report noted that small-ticket loans disbursed under PM SVANidhi and the [[Pradhan Mantri Mudra Yojana]] may face repayment stress due to economic factors such as rising costs and reduced foot traffic, particularly amid the war in West Asia.<ref name="mint">{{cite news |last=Kumar |first=Harsh |last2=Pimpalkhare |first2=Manas |title=PM SVANidhi Scheme, PM Mudra Yojana may face loan repayment stress amid West Asia war |work=Mint |date=20 May 2026 |url=https://www.livemint.com/economy/pm-svanidhi-mudra-yojana-loan-stress-west-asia-war/amp-11779188978507.html |access-date=14 October 2026}}</ref> Policy planners expected some stress in the PM SVANidhi portfolio as it directly caters to street vendors, who form an important part of the informal urban economy, and reduced footfall in offices was likely to impact their earnings and repayment capacity.<ref name="mint" /> A study on street vendors in Bihar highlighted gaps in identification and coverage, with uneven distribution across towns and barriers related to awareness, outreach, and administrative processes.<ref name="nasvi">{{cite web |title=NASVI Report: PM Street Vendor's |publisher=National Association of Street Vendors of India |url=https://nasvinet.org/ |access-date=14 October 2026}}</ref>

== See also ==
* [[Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014]]
* [[Pradhan Mantri Mudra Yojana]]
* [[Ministry of Housing and Urban Affairs]]
* [[Department of Financial Services]]
* [[Small Industries Development Bank of India]]

== References ==
{{reflist}}

PM SVANidhi Scheme - Revision history