🗞️ Why in News: PM SVANidhi (PM Street Vendor’s AtmaNirbhar Nidhi) completed six years since its launch in June 2020. PM Modi highlighted its milestones on June 1, 2026 — over ₹17,800 crore disbursed across 1.12 crore collateral-free loans to 75.5 lakh street vendors, with 841 crore digital transactions worth ₹8.96 lakh crore facilitated.
Scheme Snapshot
| Parameter | Detail |
|---|---|
| Full name | PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) |
| Launch | June 1, 2020 (during COVID-19) — completing 6 years as of today |
| Ministry | Ministry of Housing and Urban Affairs (MoHUA) |
| Category | Central Sector Scheme |
| Target beneficiaries | Urban street vendors — permanently displaced or severely impacted by COVID-19 |
Six-Year Achievements
| Indicator | Value |
|---|---|
| Total loans disbursed | Over 1.12 crore |
| Total amount disbursed | Over ₹17,800 crore |
| Vendors benefited | 75.5 lakh |
| Digitally onboarded vendors | Over 55 lakh |
| Digital transactions | Over 841 crore transactions worth ₹8.96 lakh crore |
| First-time formal credit | ~95% of beneficiaries accessed formal credit for the first time |
| SVANidhi se Samriddhi | 50+ lakh families profiled; 1.52 crore welfare benefits sanctioned |
How the Scheme Works
PM SVANidhi provides collateral-free, subsidised working capital loans through a 3-tier escalation model:
| Loan Tier | Amount | Eligibility |
|---|---|---|
| 1st loan | ₹10,000 | Initial |
| 2nd loan | ₹20,000 | After repayment of 1st |
| 3rd loan | ₹50,000 | After repayment of 2nd |
Interest subsidy: Vendors receive an interest subsidy of 7% per annum (credited quarterly).
Digital incentive: Vendors who make digital payments receive a cashback (up to ₹1,200/year in the initial design) to incentivise digital adoption.
Certificate of Vending (CoV): The scheme also regularises street vendors through formal identification and vending certificates under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
SVANidhi se Samriddhi
This sub-programme goes beyond credit — it links vendor families to 8 central welfare schemes (housing, insurance, ration card, etc.), making PM SVANidhi a financial-inclusion + social-security bridge.
Why It Matters
- Financial inclusion — ~95% of beneficiaries are first-time formal-credit users (previously reliant on moneylenders at 2–5% per month).
- Digital economy — 841 crore digital transactions by informal-sector vendors represents a significant penetration of UPI/digital payments into the urban informal economy.
- Post-COVID recovery tool — launched specifically to rehabilitate a sector wiped out by lockdowns.
- Urban livelihoods — India has an estimated 50 lakh+ street vendors in cities; the scheme has now touched 75+ lakh (some multiple beneficiaries, some from peri-urban areas).
UPSC Relevance
| Paper | Relevance |
|---|---|
| GS2 | Government schemes — urban poverty, financial inclusion, social security, urban governance |
| GS3 | Economy — informal sector, working capital credit, digital payments, UPI penetration |
| Mains | “PM SVANidhi has demonstrated that targeted micro-credit linked to welfare convergence can transform informal urban livelihoods. Examine critically.” |
| Prelims | PM SVANidhi — launched June 2020; MoHUA; loans ₹10k→₹20k→₹50k; 7% interest subsidy; 75.5 lakh vendors; SVANidhi se Samriddhi; Street Vendors Act 2014 |
Facts Corner
📌 Facts Corner — Knowledgepedia
PM SVANidhi:
- Launched: June 1, 2020 (COVID-19 response)
- Ministry: MoHUA
- Category: Central Sector Scheme
6-Year Milestones (June 2026):
- 1.12 crore loans; ₹17,800 crore disbursed
- 75.5 lakh vendors benefited
- 55 lakh digitally onboarded
- 841 crore digital transactions; ₹8.96 lakh crore value
- ~95% first-time formal-credit users
Loan Tiers: ₹10,000 → ₹20,000 → ₹50,000 (collateral-free); 7% interest subsidy
SVANidhi se Samriddhi: 50+ lakh families; links to 8 central welfare schemes; 1.52 crore benefits sanctioned
Street Vendors Act, 2014 — governs Certificate of Vending (CoV) and vendor regularisation
Sources: PIB, MoHUA — PM SVANidhi, The Hindu
Source: PM SVANidhi Completes 6 Years — ₹17,800 Crore Disbursed to 75.5 Lakh Street Vendors — Ujiyari.com | Free UPSC & State PCS Current Affairs
