Home / Business and Economy / PM SVANidhi Scheme Empowers Street Vendors Nationwide
PM SVANidhi Scheme Empowers Street Vendors Nationwide
13 Oct
Summary
- PM SVANidhi scheme launched in June 2020 to support street vendors
- Provides working capital loans up to ₹50,000 without any guarantee
- Offers 7% interest subsidy and up to ₹1,600 cashback on digital payments
On June 1, 2020, the central government introduced the Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) scheme to support street vendors and small businesses nationwide. The aim of the initiative is to empower these entrepreneurs and promote self-reliance.
Under the PM SVANidhi scheme, eligible vendors can avail working capital loans of up to ₹15,000, ₹25,000, or ₹50,000 without any guarantee. To incentivize regular loan repayments, the scheme offers a 7% annual interest subsidy and up to ₹1,600 cashback on digital payments. Additionally, no extra fees will be charged for prepaying the loan.
The scheme caters to a wide range of vendors, including those who possess a Certificate of Vending or Identity Card issued by the Municipal Body, as well as those who have been identified in the survey but not yet issued a certificate. Vendors in rural or semi-urban areas adjacent to city limits are also eligible through a Letter of Recommendation.
Applicants can directly apply through the PM SVANidhi portal or at the nearest Common Service Center. The loans are disbursed through various financial institutions, including scheduled commercial banks, regional rural banks, small finance banks, cooperative banks, NBFCs, microfinance institutions, and self-help group banks.
