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PM SVANidhi Scheme Full Form, Eligibility And Benefits

Madhavi Gaur January 15, 2025 05:51 6101 0

PM SVANidhi Scheme stands for Prime Minister Street Vendor’s AtmaNirbhar Nidhi, is a central sector scheme launched in June 2020. Learn more about PM SVANidhi Scheme here.

PM SVANidhi Scheme Full Form, Eligibility And Benefits

PM SVANidhi Scheme: The Ministry of Housing and Urban Affairs (MoHUA) has launched the Pradhan Mantri Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) to provide affordable loans to street vendors. Originally announced as part of Economic Stimulus-II under the Atmanirbhar Bharat Abhiyan, the scheme aims to benefit vendors, hawkers, thelewale, and those involved in textiles, apparel, artisan products, barbershops, laundry services, etc., across various areas.

What is PM SVANidhi Scheme?

The full form of PM SVANidhi is “Prime Minister Street Vendor’s AtmaNirbhar Nidhi.” The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme was launched in June 2020 by the Ministry of Housing and Urban Affairs (MoHUA). It aims to provide affordable working capital loans to street vendors affected by the COVID-19 pandemic, helping them resume their businesses and achieve self-reliance.

Key Objectives of PM SVANidhi Scheme

To empower street vendors by offering collateral-free working capital loans.
To promote the use of digital transactions among street vendors.
To provide an interest subsidy for timely repayment of loans.
To improve the economic conditions of urban and peri-urban street vendors.

PM SVANidhi Scheme Key Highlights

Loan Facility:
- Street vendors can access a working capital loan of up to Rs. 10,000, repayable in monthly installments within a year, and without the need for collateral.
- Microfinance Institutions, Non-Banking Financial Companies, and Self-Help Groups are included in the scheme, leveraging their ground-level presence and proximity to urban poor, including street vendors.
- Early repayment incurs no penalties.
Eligibility:
- Those vending until March 24, 2020, are eligible for the scheme.
- For the first time, street vendors from peri-urban/rural areas are beneficiaries of an urban livelihood program.
Validity:
- The scheme is operational until March 2022.
Interest Subsidy:
- A 7% per annum interest subsidy is provided on timely/early repayment, credited directly to beneficiaries’ bank accounts every six months.
Credit Limit Escalation:
- Timely/early repayment allows for a credit limit increase. Vendors with a good credit score become eligible for a higher term loan, such as Rs. 20,000.
Digital Transactions Incentive:
- Incentives for digital transactions through monthly cashback.
Capacity Building:
- MoHUA, in collaboration with State Governments, will launch capacity-building and financial literacy programs for stakeholders and conduct Information, Education, and Communication (IEC) activities nationwide. Loan disbursement will commence in July.
Role of ULBs:
- Urban Local Bodies (ULBs) play a pivotal role in efficient scheme implementation by targeting beneficiaries.
E-Governance:
- A digital platform with a web portal/mobile app is being developed for end-to-end administration. Integration with SIDBI’s UdyamiMitra portal and MoHUA’s PAiSA portal will ensure credit management and automatic administration of interest subsidies, facilitating the integration of vendors into the formal financial system.

Important Facts about PM SVANidhi for UPSC

PM SVANidhi, which stands for Prime Minister Street Vendor’s AtmaNirbhar Nidhi, is a central sector scheme launched in June 2020. It was introduced to provide micro-credit facilities to street vendors who were adversely affected by the COVID-19 pandemic. This scheme, falling under the Ministry of Housing and Urban Affairs (MoHUA), targets street vendors in urban, peri-urban, and rural areas who were active on or before 24th March 2020.

Details	Information
Launch Date	1st June 2020
Mandatory Documents	Aadhar Card, Voter Identity Card
Ministry	Ministry of Housing and Urban Affairs (MoHUA)
Full-Form of PM SVANidhi	Prime Minister Street Vendor’s Atmanirbhar Nidhi
Target Beneficiary	Street Vendors or hawkers in urban areas, peri-urban areas, and rural areas (Those street vendors as on/before 24th March 2020)
Tenure of the Scheme	June 2020 – March 2022
Website	pmsvanidhi.mohua.gov.in

Salient Features of PM SVANidhi Scheme

The COVID-19 pandemic and subsequent lockdowns significantly impacted the livelihoods of street vendors, who often work with a small capital base. The scheme aims to provide credit for working capital to help street vendors resume their livelihoods.

It is a central sector scheme.
Affordable working capital loans are provided to street vendors affected by the pandemic.
The scheme will be implemented till March 2022.
Vendors receive an initial working capital of up to Rs. 10,000.
An interest subsidy of 7% is given for early or timely repayment of loans.
Monthly cash-back incentives are provided on digital payments in the range of Rs. 50-100.
Vendors have a higher chance of eligibility for a higher loan if they repay the first loan on time.
Collateral security is not required to access the loan.

Objectives of PM SVANidhi Scheme

The PM SVANidhi Scheme is a transformative initiative aimed at supporting the livelihoods of street vendors and integrating them into the formal economy. By offering affordable loans, digital incentives, and interest subsidies, the scheme plays a pivotal role in promoting self-reliance and resilience among one of the most vulnerable segments of society.

Provide vendors access to affordable working capital loans to resume their livelihood activities post-lockdown.
Incentivize regular repayment of loans through provisions like cash-back and higher loans on subsequent demands.
Promote digitalization by rewarding vendors who opt for digital repayments.

Lending Institutions under PM SVANidhi Scheme

Scheduled Commercial Banks
Regional Rural Banks
Cooperative Banks
Non-Banking Financial Companies
Micro-Finance Institutions
Self-Help Groups (SHG) Banks

PM SVANidhi Scheme Eligibility Criteria

The PM SVANidhi scheme is accessible to all street vendors actively engaged in vending in urban areas on or before March 24, 2020. The eligible vendors are identified based on the following criteria:

Street vendors with Certificate of Vending/Identity Card from Urban Local Bodies (ULBs): Vendors who possess a Certificate of Vending or Identity Card issued by Urban Local Bodies fall under this category.
Vendors identified in the survey without a Certificate of Vending/Identity Card: For vendors identified in surveys but lacking a Certificate of Vending or Identity Card, a Provisional Certificate of Vending will be generated through an IT-based platform. ULBs are encouraged to promptly issue permanent Certificates of Vending and Identification Cards to such vendors within one month.
Street Vendors not covered in ULB-led identification survey or those who started vending after the survey: Vendors left out of the ULB-led identification survey or those who commenced vending after the survey and possess a Letter of Recommendation (LoR) from the ULB/Town Vending Committee (TVC) are eligible.
Vendors from surrounding development/peri-urban/rural areas within the geographical limits of ULBs: Street vendors from surrounding development, peri-urban, or rural areas operating within the geographical boundaries of ULBs and holding a Letter of Recommendation (LoR) from the ULB/TVC also qualify under this scheme.

PM SVANidhi Scheme Eligibility of States/UTs

The scheme is available for beneficiaries in States/UTs that have notified rules and schemes under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Meghalaya, which has its own State Street Vendors Act, is also eligible.

PM SVANidhi Scheme Implementation Partner

The Small Industries Development Bank of India (SIDBI) serves as the implementation partner for the Ministry of Housing and Urban Affairs for scheme administration. SIDBI leverages the network of lending institutions, including SCBs, RRBs, SFBs, Cooperative Banks, NBFCs, and MFIs for scheme implementation.

PM SVANidhi Scheme Way Forward

The scheme’s loans aim to revive income for vendors impacted by Covid-19 and lockdown. Implementation gaps, awareness issues, and accessibility concerns should be promptly addressed. Additionally, providing benefits like maternity allowances, accident relief, education support, and pensions during crises is essential for the well-being of street vendors.

PM SVANidhi Scheme UPSC

The Pradhan Mantri Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) is a crucial government scheme designed to offer micro-credit facilities specifically to street vendors who have been adversely impacted by the COVID-19 pandemic. Launched on June 1, 2020, this central sector scheme falls under the Ministry of Housing and Urban Affairs (MoHUA). Its primary objective is to provide collateral-free working capital loans to street vendors, facilitating the restart of their businesses amid the economic challenges posed by the pandemic.

For candidates preparing for the UPSC 2023 examination, understanding the key aspects of the PM SVANidhi scheme is essential, as questions related to government schemes are commonly featured in the exam.

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PM SVANidhi Scheme Prime Minister Street Vendor’s AtmaNirbhar Nidhi Schemes upsc

PM SVANidhi Scheme FAQs

The Pradhan Mantri Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi) has been introduced by the Ministry of Housing and Urban Affairs (MoHUA) to offer cost-effective loans to street vendors. Initially announced as part of the Economic Stimulus-II under the Atmanirbhar Bharat Abhiyan, this scheme aims to empower street vendors economically.

Since June 1, 2020, the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme has been executed by the Ministry of Housing and Urban Affairs (MoHUA). The scheme aims to offer collateral-free working capital loans to street vendors, allowing them to revive businesses that were negatively affected by the Covid-19 pandemic.

Street vendors have the option to submit their applications either directly on the PM SVANidhi portal or through a nearby Common Service Centre (CSC). Comprehensive guidelines outlining the scheme's procedures are available on the PM SVANidhi portal. These guidelines serve as a valuable resource for street vendors and other stakeholders, including states, urban bodies, and lenders, to facilitate the seamless delivery of benefits to the scheme's beneficiaries.

The recent approval has raised the loan amount to Rs. 8,100 crore, empowering street vendors with additional working capital for business expansion, fostering self-reliance. Moreover, the budget allocated for promoting digital payments, along with cashback incentives to vendors, has been increased.

On June 1, 2020, the Ministry of Housing and Urban Affairs (MoHUA) introduced the Prime Minister Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi) Scheme. The primary objective of this initiative is to provide collateral-free working capital loans to street vendors, enabling them to revive businesses that suffered due to the adverse effects of the COVID-19 pandemic.