PM SVANidhi Scheme: Empowering Street Vendors for Economic Recovery and Socioeconomic Upliftment

PM SVANidhi Scheme: Empowering Street Vendors for Economic Recovery and Socioeconomic Upliftment

In response to the economic challenges posed by the COVID-19 pandemic, the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was initiated on June 1, 2020. This program aimed to extend financial support to marginalized street vendors who had been adversely affected by the pandemic-induced downturn. Through collateral-free working capital loans, street vendors were empowered to restart their businesses and regain their livelihoods.

Prime Minister Narendra Modi recently interacted with beneficiaries of the PM SVANidhi scheme at the JLN Stadium in Delhi on March 14, 2024. During this event, loans were distributed to 100,000 street vendors. The Prime Minister emphasized the challenges faced by street vendors, many of whom migrate from rural areas to cities in search of livelihoods. He highlighted that the PM SVANidhi not only provides financial aid but also connects beneficiaries to other government benefits such as free ration, healthcare, and gas connections.

The objectives of the scheme are clear:

  • Offer collateral-free working capital loans of up to ₹10,000 for a tenure of one year, with the possibility of increased loans up to ₹20,000 and ₹50,000 in subsequent tranches upon repayment.
  • Provide incentives for regular repayment through a 7% per annum interest subsidy.
  • Encourage digital transactions by offering annual cashback of up to ₹1,200.

As of March 15, 2024, significant progress has been made:

  • Close to 63 lakh street vendors have benefited from the scheme, with approximately 56% male and 44% female beneficiaries.
  • Over 83.27 lakh loans totaling Rs. 11,127 crore have been disbursed under PM SVANidhi.
  • A majority of the beneficiaries, accounting for 65%, belong to SC/ST/OBC categories.
  • Street vendors have received cashback exceeding Rs. 102.05 crore as a result of their digital transactions.

The PM SVANidhi Scheme has played a crucial role in providing financial assistance to street vendors nationwide, enabling them to sustain their livelihoods and recover from the economic setbacks of the pandemic. Its success lies in its ability to touch the lives of millions of street vendors, fostering their holistic development and socioeconomic upliftment.