Unlocking Opportunities with PM Svanidhi Yojana


The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Yojana was introduced by the Indian government in June 2020 to support the street vendors who were adversely affected by the COVID-19 pandemic. This scheme aims to provide affordable working capital loans to street vendors to resume their businesses and earn a livelihood. The scheme targets over 50 lakh street vendors across the country, with a special focus on empowering women in this sector.

Understanding PM SVANidhi Yojana

The PM SVANidhi Yojana offers micro-credit facilities to street vendors who were vending on or before March 24, 2020. Under this scheme, vendors can avail an initial working capital loan of up to Rs. 10,000, which is repayable in monthly installments. There are incentives for timely repayment, as well as an interest subsidy of 7% per annum on regular repayments.

Eligibility Criteria for PM SVANidhi Yojana

To avail the benefits of the PM SVANidhi Yojana, street vendors need to fulfill certain eligibility criteria:

  • The vendor must be above 18 years of age.
  • They should possess a certificate of vending or an ID card issued by the urban local body.
  • The vendor’s operational location should be identified on the survey list of the urban local body.

Key Features of PM SVANidhi Yojana

1. Digital Platform Integration

The PM SVANidhi Yojana emphasizes the use of digital platforms for loan processing and disbursement, making the process quick and transparent. Vendors can apply for loans through an online portal or at CSCs (Common Service Centers) located at various locations.

2. Interest Subsidy

This scheme offers an interest subsidy of 7% per annum for timely repayment of the loan. This incentive encourages vendors to repay their loans promptly and build a good credit history.

3. Affordable Loans

The PM SVANidhi Yojana provides working capital loans at low-interest rates, enabling street vendors to restart their businesses and generate income. This financial support plays a crucial role in restoring livelihoods impacted by the pandemic.

4. Incentives for Digital Transactions

Vendors who adopt digital payment methods are eligible for cashback incentives, promoting the shift towards a cashless economy. This initiative not only benefits vendors but also contributes to the government’s vision of a digital India.

How to Apply for PM SVANidhi Yojana

The application process for the PM SVANidhi Yojana is simple and can be completed online or at CSCs. To apply, vendors need to provide their Aadhaar card, bank account details, and a photograph. The loan approval and disbursement are done promptly, ensuring quick access to funds for the vendors.

Benefits of PM SVANidhi Yojana

1. Financial Inclusion

The PM SVANidhi Yojana promotes financial inclusion by providing access to formal credit to street vendors who were previously excluded from the banking system. This inclusion empowers vendors to expand their businesses and improve their standard of living.

2. Economic Stability

By offering affordable working capital loans, the scheme stabilizes the financial position of street vendors and helps them recover from the economic challenges posed by the pandemic. The steady income generated through their businesses enhances their economic stability.

3. Empowerment of Women Entrepreneurs

The PM SVANidhi Yojana focuses on empowering women street vendors by encouraging their participation in the scheme. This initiative not only supports the economic independence of women but also recognizes their significant contribution to the informal sector.

Challenges Faced by Street Vendors

Despite the benefits of the PM SVANidhi Yojana, street vendors encounter various challenges in expanding their businesses and sustaining their livelihoods:

  • Lack of awareness about the scheme
  • Limited access to digital platforms
  • Competition from established businesses
  • Availability of prime vending locations
  • Seasonal fluctuations in income

Frequently Asked Questions (FAQs)

1. Can a street vendor apply for multiple loans under the PM SVANidhi Yojana?

No, a street vendor can avail only one working capital loan under the PM SVANidhi Yojana.

2. What is the repayment period for the loan obtained under this scheme?

The loan obtained under the scheme has to be repaid in monthly installments within the tenure specified by the lending institution.

3. Is there a subsidy for street vendors who repay their loans on time?

Yes, vendors who repay their loans on time are eligible for an interest subsidy of 7% per annum.

4. Are there any penalties for delayed loan repayment?

While there are no penalties for delayed repayment, timely repayment helps vendors avail incentives and build a positive credit history.

5. Can street vendors apply for the PM SVANidhi Yojana offline?

Yes, street vendors can apply for the scheme offline at Common Service Centers (CSCs) located in various areas.

In conclusion, the PM SVANidhi Yojana plays a pivotal role in revitalizing the livelihoods of street vendors and promoting their financial inclusion. By providing affordable working capital loans and incentives for timely repayment, the scheme empowers vendors to rebuild their businesses and secure a stable income. Additionally, the focus on digital integration and women empowerment enhances the impact of this initiative, making it a significant step towards creating a self-reliant street vending ecosystem in India.



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