The PM SVANidhi Scheme is a Ministry of Housing and Urban Affairs (MoHUA) special micro-credit facility launched in 2020 to support street vendors, offering collateral-free working capital loans (starting at ₹10,000, then ₹20,000, ₹50,000) with a 7% annual interest subsidy for timely repayment and cashbacks for digital transactions (up to ₹100/month) to boost financial inclusion and formalize the sector.
Key Features & Benefits:
- Affordable Loans: Collateral-free working capital loans (up to ₹10,000, then ₹20,000, ₹50,000) to restart or grow businesses.
- Interest Subsidy: 7% annual subsidy credited quarterly for timely/early loan repayment.
- Digital Incentives: Cashback (up to ₹100/month) for digital transactions (UPI, RuPay).
- Credit Card Facility: Introduction of UPI-linked RuPay Credit Card for immediate access to credit.
- No Collateral/Charges: No collateral required, and zero processing/documentation fees.
- Capacity Building: Includes training on entrepreneurship, digital skills, and food safety (for food vendors).
Eligibility:
- Street vendors with a Certificate of Vending/Identity Card issued by Urban Local Bodies (ULBs).
- Those identified in ULB surveys but awaiting certificates.
How to Apply:
- Through participating banks or via the JanSamarth portal.
- Look for special camps organized by ULBs for application assistance.
Objectives:
- Formalize the street vending sector.
- Enhance financial self-reliance and access to formal credit.
- Boost digital adoption among vendors.
