Prime Minister highlights six years of PM SVANidhi scheme and extends best wishes to beneficiaries

📌 Summary:

• PM Modi marked #6YearsofPMSVANidhi (PM Street Vendor's AtmaNirbhar Nidhi) on 1 June 2026, highlighting its role in transforming the lives of street vendors
• Scheme provides collateral-free credit, financial inclusion and growth opportunities to street vendors
• PM described it as a scheme rooted in trust, dignity and empowerment
• Extended best wishes to all beneficiaries; lauded their determination and contribution to the nation's economy

🎯 UPSC Relevance: GS2 Governance — central-sector welfare scheme for the urban informal sector; financial inclusion of street vendors (a historically credit-excluded group); links between micro-credit, dignity of livelihood and urban poverty alleviation

📝 Prelims Facts:

• PM SVANidhi = PM Street Vendor's AtmaNirbhar Nidhi; launched 1 June 2020 by Ministry of Housing and Urban Affairs (MoHUA)
• Type: central sector scheme (100% Centre-funded)
• Provides collateral-free working capital loans to street vendors in three escalating tranches: ₹10,000 → ₹20,000 → ₹50,000 (on timely repayment)
• Interest subsidy of 7% per annum on timely repayments; cashback up to ₹1,200/year for digital transactions
• Identified through Letter of Recommendation (LoR) from Urban Local Body or Town Vending Committee for vendors not covered by survey
• Linked to formalisation of urban street vendors and DigiSathi onboarding
• Eligible: urban street vendors (also peri-urban/rural vendors selling in urban areas as per March 2022 expansion)

🔑 Key Term: Collateral-Free Credit — small-ticket loans extended without requiring borrower to pledge assets as security; central to financial inclusion of informal/micro-entrepreneurs who lack formal collateral.