SYLLABUS

GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 

GS-3: Indian Economy and issues relating to Growth, Development and Employment; Inclusive Growth and issues arising from it. 

Context: PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) has completed six years as a flagship micro-credit and financial inclusion scheme of the Ministry of Housing and Urban Affairs (MoHUA).

About PM SVANidhi

• PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) is a Central Sector Scheme launched in June 2020 by the Government of India to support street vendors affected by the COVID-19 pandemic. 

• It is implemented by the Ministry of Housing and Urban Affairs (MoHUA) in collaboration with the Department of Financial Services (DFS). 

• The scheme has been extended till March 2030. 

• Objective: The scheme aims to provide "Swarozgar, Svavlamban and Swabhimaan" (self-employment, self-reliance and dignity) to street vendors. 

• Its objective is not merely to provide credit but also to promote financial security, social recognition, digital inclusion and sustainable livelihood opportunities. 
• It seeks to reduce dependence on informal moneylenders who often charge exorbitant interest rates.

• Coverage: The scheme covers street vendors engaged in the sale of goods, food items and services in urban areas. 

• It is the first dedicated micro-credit scheme for street vendors in India.

• Financial Assistance: Provides collateral-free working capital loans through three progressive tranches: ₹15,000 (First Tranche), ₹25,000 (Second Tranche) and ₹50,000 (Third Tranche). 

• The scheme also provides credit guarantee support for the loans. 

• Interest Subsidy and Credit Incentives: Beneficiaries receive an interest subsidy of 7% per annum on timely repayment. 

• Timely repayment enables access to higher loan tranches and improves creditworthiness. 

• UPI-linked RuPay Credit Card: Vendors successfully repaying eligible loan tranches can avail UPI-linked RuPay Credit Cards with credit limits of up to ₹30,000. 

• Digital Inclusion: The scheme promotes digital transactions through cashback incentives of up to ₹1,600. 

• It encourages the adoption of digital payment platforms and financial literacy among street vendors. 

• SVANidhi Se Samriddhi (SSS): Under SVANidhi Se Samriddhi, beneficiary families are profiled and linked with eight selected Central Government welfare schemes. 

• The initiative aims to provide a comprehensive social security net for street vendor households.

Impact of PM SVANidhi

• Economic Empowerment: Nearly 95% of PM SVANidhi beneficiaries accessed formal institutional credit for the first time, with around 30% later obtaining additional loans beyond the scheme, reflecting improved creditworthiness. 

• Income Enhancement: Beneficiaries recorded an average annual income increase of nearly 20%, indicating improved economic resilience and livelihood security. 

• Digital and Financial Inclusion: The scheme has integrated millions of street vendors into the formal banking and digital payment ecosystem, enhancing financial literacy, transparency, and access to financial services. 

• Improvement in Household Welfare: Independent assessments conducted in 2023 and 2025 found significant improvements in housing stability, healthcare access, education, and nutrition among beneficiary households. 

• Social Inclusion: Women account for nearly 46% of beneficiaries, while around 70% belong to marginalized communities, demonstrating the scheme’s broad and inclusive outreach. 

• Strengthening Urban Livelihoods: PM SVANidhi has improved business sustainability, supported micro-enterprises, strengthened local supply chains, and enhanced the integration of street vendors with Urban Local Bodies (ULBs).

Sources :
PIB
PIB
The Hindu
PIB