PM SVANidhi: Collateral-Free Loans for Street Vendors
Last updated: 2026-11-13 · MockMentor
PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi), launched on 1 June 2020, gives collateral-free working capital loans to street vendors, first to help them restart after COVID-19. It has grown into a financial inclusion platform and is extended to 31 March 2030. SIDBI is the implementing agency.
In one line: small, step-up loans for street vendors, with an interest subsidy and cashback for going digital.
At a glance
| Item | Details |
|---|---|
| Launched | 1 June 2020 |
| Extended to | 31 March 2030 |
| Type | Central Sector Scheme |
| Outlay | ₹7,332 crore |
| Agency | SIDBI, through banks |
| Loans | ₹15,000, then ₹25,000, then ₹50,000 |
| Interest subsidy | 7%, credited quarterly by DBT |
Key features
- Digital cashback: up to ₹1,200 a year for regular digital receipts, plus up to ₹400 for digital wholesale purchases.
- A UPI-linked RuPay credit card after the second loan is repaid.
- No prepayment penalty.
- Graded guarantee cover through CGTMSE.
- SVANidhi se Samriddhi links vendors' families to eight welfare schemes.
- Vendors vending on or before 24 March 2020 qualify, including those identified through a Letter of Recommendation.
Possible exam questions
- How can digital payments build a credit history for informal workers? Discuss with reference to PM SVANidhi.
- What is the role of credit guarantees in lending to micro borrowers?
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