PM SVANidhi: Advancing Financial Inclusion for Street Vendors

📌 Summary:

• PM SVANidhi (PM Street Vendors AtmaNirbhar Nidhi) — Central Sector Scheme launched in June 2020 during COVID-19 to provide collateral-free micro-credit to street vendors; jointly implemented by Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS)

• Scheme has been restructured and the lending period extended until March 2030

• Loan tranches: Rs. 15,000 → Rs. 25,000 → Rs. 50,000 (progressive, collateral-free working capital), plus interest subsidy of 7% per annum for timely repayment

• Additional benefits: UPI-linked RuPay Credit Card up to Rs. 30,000 for eligible vendors; cashback incentives up to Rs. 1,600 for digital transactions; credit guarantee support

• Outreach as of date: 75.5 lakh+ street vendors covered; 112 lakh+ loans disbursed worth Rs. 17,800+ crore; ~Rs. 800 crore released as interest subsidy and digital cashback

• Digital transactions: 55 lakh+ vendors completed 841 crore+ digital transactions worth ~Rs. 8.96 lakh crore

• "SVANidhi se Samriddhi" linkage: 50 lakh+ beneficiary families profiled and linked with 8 Central welfare schemes; 1.52 crore+ welfare benefits sanctioned

• Capacity building: ~6 lakh street food vendors trained on food safety and hygiene with FSSAI partnership

• Impact: ~95% beneficiaries accessed formal credit for the first time; average beneficiary income up ~20% annually; women = 46% of beneficiaries; ~70% from marginalised communities

🎯 UPSC Relevance: GS3 Indian Economy — financial inclusion of urban informal workforce, micro-credit and digital payments as tools of inclusive growth, integration of street vendors into formal welfare ecosystem.

📝 Prelims Facts:

• PM SVANidhi launched: 1 June 2020 by Ministry of Housing & Urban Affairs (MoHUA)
• Loan amounts: First tranche Rs. 10,000 (since enhanced to Rs. 15,000), then Rs. 25,000, then Rs. 50,000
• Interest subsidy: 7% per annum on timely repayment (credited to Aadhaar-linked bank account)
• Street vendors are protected under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014
• Letter of Recommendation (LoR) or Certificate of Vending (CoV) is the eligibility document, issued by Urban Local Bodies (ULBs)
• "SVANidhi se Samriddhi" links beneficiaries with PMJJBY, PMSBY, PMJDY, APY, PM Maan Dhan, BoCW registration etc.

🔑 Key Term: SVANidhi se Samriddhi — a convergence initiative under PM SVANidhi that profiles street vendor households and links them with eight Central Government welfare schemes (social security, insurance, pension, maternity benefits) to ensure 360-degree socio-economic upliftment beyond just credit access.