Street vendors are an integral part of India’s urban economy. From tea vendors and cobblers to fruit sellers and food stall owners, they serve millions every day. However, their livelihood is often unrecognized and unstable. To support this community, the government launched the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme in 2020.
Objectives of the Scheme
- To provide working capital loans to street vendors.
- To formalize the unorganized vendor sector.
- To promote digital transactions and financial literacy.
Who Can Apply?
The scheme is open to:
- All street vendors who were vending on or before March 24, 2020.
- Vendors registered under urban local bodies (ULBs) or holding a vendor ID card.
- Vendors identified in surveys conducted by municipalities.
Key Features
- Initial Working Capital Loan:
- ₹10,000 for a tenure of 1 year with monthly EMI.
- No Collateral:
- Loans are collateral-free and easy to access through banks or micro-finance institutions.
- Interest Subsidy:
- 7% annual subsidy credited quarterly.
- Digital Incentives:
- Cashback up to ₹1,200 per year for digital transactions through UPI, QR codes, etc.
- Higher Loan on Timely Repayment:
- Access to ₹20,000 and then ₹50,000 in subsequent loans.
How to Apply
- Vendors can apply online at pmsvanidhi.mohua.gov.in.
- Offline applications can be made through banks or CSCs.
- Aadhaar and mobile number are mandatory for registration.
Success Stories
As of 2025, the scheme has benefited over 45 lakh vendors. Many have:
- Doubled their daily earnings.
- Expanded their business operations.
- Transitioned to digital payments and record-keeping.
Impact of the Scheme
- Promoted financial inclusion among the urban poor.
- Supported women-led street businesses.
- Reduced dependency on informal credit sources with high interest.
Conclusion
The PM SVANidhi scheme is a powerful initiative that recognizes the contribution of street vendors and offers them the tools to become self-reliant entrepreneurs. It reflects the government’s commitment to inclusive growth and urban resilience.
