PM SVANidhi Scheme: Benefits, Loan Amounts and Key Features

Why in News

PM SVANidhi has emerged as a major initiative supporting vendors working across India’s informal urban economy. Beyond providing collateral-free loans, the scheme has encouraged digital adoption, improved access to institutional credit and expanded social security coverage. 

Key Points

• Since its launch in 2020, more than 1.12 crore loans have already been disbursed. The initiative has benefited over 75 lakh beneficiaries across cities and towns. Loans worth over ₹17,800 crore have been provided under the scheme.
• Its impact is visible not only in official numbers but also in the everyday journey of vendors building stronger and more sustainable livelihoods.

Scheme Profile

• Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched in June 2020.
• It is a Central Sector Scheme.
• It is implemented by MoHUA and the Department of Financial Services (DFS).

Financial Inclusion Measures

• It provides collateral-free working capital loans of ₹15,000, ₹25,000 and ₹50,000 in progressive tranches.
• Beneficiaries receive interest subsidy and credit guarantee support.
• Eligible vendors can obtain UPI-linked RuPay Credit Cards with limits up to ₹30,000.

Digital Empowerment

• Vendors receive cashback incentives of up to ₹1,600 for digital transactions.
• The scheme promotes digital literacy and financial inclusion.
• It encourages adoption of UPI-based payments.

Social Security Linkages

• Under SVANidhi se Samriddhi (SSS), beneficiaries are linked with multiple Central welfare schemes.
• Socio-economic profiling helps create a comprehensive social protection network.
• Vendors receive training in financial literacy and food safety in collaboration with FSSAI.