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PM SVANidhi provides collateral-free working capital loans to urban street vendors. Launched June 1, 2020. Cabinet extended to March 31, 2030 with enhanced amounts. 1st tranche: ₹15,000 (↑from ₹10,000); 2nd: ₹25,000 (↑from ₹20,000); 3rd: ₹50,000. Beneficiaries: 71.57L (1st), 27.28L (2nd), 6.61L (3rd). Total outlay: ₹7,332 crore. New: UPI-linked RuPay Credit Card for vendors.
Target Beneficiaries: 71.57 lakh (1st tranche); 27.28 lakh (2nd); 6.61 lakh (3rd) — total 1.05+ crore street vendors
7332
Funding Ratio (Centre:State): 100% Central Sector Scheme (Interest subsidy and cashback borne by Centre)
GS Paper: GS2
Syllabus Tags
Launched in June 2020 as part of the Atmanirbhar Bharat Abhiyan to support vendors affected by COVID-19 lockdowns.
Mapping socio-economic profiles of beneficiaries to link them with 8 other welfare schemes.
Metric
82 Lakhs
Source: MoHUA
Metric
35 Lakh+ families
Source: PIB
PM SVANidhi is a landmark scheme that formally recognizes street vendors as essential urban stakeholders. By linking credit to digital footprints, it solves the problem of 'information asymmetry' that previously kept vendors in the clutches of informal moneylenders. However, the scheme's success is heavily dependent on the digital literacy of vendors and the willingness of public sector banks to process small-ticket loans without collateral. The graduation from ₹15,000 to ₹60,000 loans encourages financial discipline, but high rejection rates in certain states remain a bottleneck.
How has PM SVANidhi transformed the financial landscape for street vendors in India? Discuss the role of digital incentives in this transformation.
Use PM SVANidhi to illustrate 'Financial Inclusion' and 'Social Security for the Informal Sector' in GS2 and GS3. Mention the 'Svanidhi se Samriddhi' component for holistic welfare. It is a prime example of using the 'JAM Trinity' (Jan Dhan, Aadhaar, Mobile) to provide targeted fiscal stimulus post-pandemic.