PM SVANidhi: Transforming Urban Livelihoods through Financial Inclusion

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has completed a significant milestone in its journey of empowering urban micro-entrepreneurs. Launched as a central sector scheme under the Ministry of Housing and Urban Affairs, it was initially designed to provide emergency credit to street vendors whose livelihoods were severely disrupted by the COVID-19 pandemic. Over the years, it has evolved into a robust mechanism for financial inclusion, having disbursed collateral-free loans to more than 75 lakh street vendors across the country. The scheme operates on a tiered credit system, offering an initial working capital loan of ₹10,000, followed by ₹20,000 and ₹50,000 upon successful repayment of previous tranches. This structure encourages a culture of credit discipline among a demographic that has historically been excluded from formal banking channels. Furthermore, the provision of a 7% interest subvention and cashback incentives for digital transactions has significantly accelerated the adoption of Digital Public Infrastructure (DPI) at the grassroots level. By incentivizing digital payments, the scheme has created a digital footprint for vendors, making them eligible for higher credit limits in the future.