PM SVANidhi – Objectives, PM Street Vendor Atmanirbhar Nidhi Scheme UPSC

By BYJU'S Exam Prep

Updated on: November 14th, 2023

PM SVANidhi is a welfare scheme for street vendors launched by Prime Minister Narendra Modi in 2020. Under this scheme, street vendors affected by COVID-19 can avail of a micro-credit facility of up to ₹10,000 to help them overcome immediate financial obstacles. PM SVANidhi stands for Prime Minister Street Vendor’s AtmaNirbhar Nidhi.

Being a Central Sector Scheme, the PM SVANidhi is funded entirely by the Ministry of Housing and Urban Affairs. Since UPSC aspirants must be familiar with this scheme, its features, and its beneficiaries, we have shared all the relevant details about the PM SVANidhi scheme below.


PM SVANidhi scheme is a welfare scheme funded by the Ministry of Housing and Urban Affairs. This scheme was launched by the Prime Minister in 2020 to extend financial assistance to street vendors. Street vendors and hawkers were some of the worst-affected people during COVID-19. Under PM SVANidhi, street vendors can get micro-credit to meet their needs. All people engaged in vending in urban regions on or before 24th March, 2020 can benefit from the PM SVANidhi scheme. Here, we have shared some essential details about the PM SVANidhi:

Details PM SVANidhi
Full Form Prime Minister Street Vendor’s Atmanirbhar Nidhi
Launched By Ministry of Housing and Urban Affairs (MoHUA)
Launch Date 1st June 2020
Duration of the Scheme June 2020 – March 2022
Scheme Benefits A credit of up to ₹10,000 for a one-year duration
Beneficiaries Street Vendors or hawkers in urban areas, peri-urban areas, and rural areas engaged in vending on or before 24th March 2020.
Eligibility Street vendors vending on or before 24th March 2020
Documents Required Aadhar Card and Voter ID Card

Objectives of PM SVANidhi

Street vendors are a vital part of any urban area. They are the source through which people can access daily-use items such as vegetables, fruits, ready-to-eat items, and other knick-knacks. PM SVANidhi scheme is an attempt to support these vendors through micro-credit facilities.

Street vendors were among the worst-affected sections of society during the coronavirus lockdowns. Many lost their livelihoods due to the same. PM Svanidhi scheme aims to help them remerge by offering them financial assistance. The objectives of this scheme are discussed in detail below:

  • To help street vendors re-establish their business after the coronavirus lockdowns.
  • To offer them support in the form of a capital loan of upto ₹10,000.
  • Encourage them to repay the loan on time and incentivize the same by offering cashback facilities.
  • PM SVANidhi also promotes the digitization and formalization of street vendors.

Features of PM SVANidhi Scheme

PM Svanidhi scheme was launched to offer support to vendors adversely affected by COVID-19 havoc. Here, we have shared some of the features of the scheme:

  • PM SVANidhi is a central sector scheme, meaning it is funded directly by the government.
  • The Ministry of Housing and Urban Affairs (MoHUA) funds the scheme.
  • The scheme was open from June 2020 to March 2022.
  • Under the PM SVANidhi, street vendors affected by the coronavirus pandemic can avail of a micro-credit of up to ₹10,000.
  • The initial working capital of the PM SVANidhi scheme will support the street vendors who lost business due to the nationwide lockdown.
  • At timely repayment of the loan, the vendor would get a 7 percent interest on the amount.
  • To access the PM Svanidhi credit facility, the vendor would not be required to provide collateral security.
  • If the vendor pays the first loan on time, they will become eligible to obtain higher loans.
  • If a vendor pays digitally, they will get a monthly cashback incentive in the range of ₹ 50-100.

How to Online Apply for PM SVANidhi Yojana

Street vendors seeking to avail of the credit facility under PM SVANidhi yojana must follow specific steps to apply for the scheme. The vendor can apply for the scheme online through an official portal. Here, we have shared the step-by-step process for applying for the PM Svanidhi scheme:

  • Fulfil the Requirements – Before applying, the vendor needs to be thorough with the scheme’s requirements and get their documents ready accordingly.
  • Check the eligibility criteria – PM SVANidhi scheme is available only for street vendors vending in an urban area on or before 24th March 2020. Vendors must check the entire eligibility criteria.
  • To get credit facilities through SVANidhi scheme, vendors must link their Aadhar card with their mobile number.

PM SVANidhi Scheme: How to Apply

Check the entire process for applying for the PM SVANidhi scheme below:

  • Step 1: Visit the official website of PM SVANidhi yojana.
  • Step 2: Click “Apply for Loan.”
  • Step 3: Register yourself and enter the OTP.
  • Step 4: Fill out the application form and enter your Aadhar card details.
  • Step 5: Submit the form and wait for the application to be processed and verified.
  • Step 6: Take a printout of the form.
  • Step 7: If you are found eligible, you will receive an amount of upto ₹10,000 under PM SVANidhi.

Eligibility Criteria for PM SVANidhi

To be eligible for the PM SVANidhi scheme, it is essential for the state or union territory in which the street vendor resides to meet certain eligibility criteria. The primary criterion is that the state or union territory should have enacted and notified Rules and Scheme under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. This ensures that the necessary legal framework is in place to protect and regulate the livelihood of street vendors.

However, it is important to note that Meghalaya is an exception to the state eligibility criteria. Since Meghalaya has its own State Street Vendors Act, it is eligible to participate in the PM SVANidhi scheme. This exemption recognizes the unique circumstances of Meghalaya and allows street vendors in the state to avail themselves of the benefits provided by the welfare scheme.

The eligibility criteria regarding the state or union territory’s compliance with the Street Vendors Act ensures that the PM SVANidhi scheme is implemented effectively and benefits those street vendors who are in need of support to enhance their livelihoods.

Documents Required For PM SVANidhi Scheme

In order to get the benefit of the PM SVANidhi scheme, the street vendors must possess a Vending Certificate or ID Card issued by ULBs (Urban Local Bodies).

  • The vendor must also possess their Aadhar Card and Voter ID Card.
  • The vendors who don’t have their Vending Certificate but are officially identified as street vendors can request a Provisional Certificate of Vending.
  • The Urban Local Bodies can assist the street vendors in obtaining a Provisional Certificate of Vending through an IT-based platform.
  • Once the provisional certificate and an identification card are granted to the vendor, they will be able to obtain the benefits of the PM SVANidhi scheme.
  • For the vendors from peri-urban or rural areas, the Letter of Recommendation (LoR) would be required to obtain PM Swanidhi benefits.

Scheme Implementation Partner for PM SVANidhi

Administrative support for the PM SVANidhi scheme will be provided by the Small Industries Development Bank of India (SIDBI). This bank is also the administrative partner of the Ministry of Housing and Urban Affairs. The bank will network with lending institutions mentioned below to implement the PM Swanidhi yojana.

PM Swanidhi Lending Institutions

Under PM SVANidhi, street vendors can avail of credit facilities from the following institutions:

  • Cooperative Banks
  • Micro-Finance Institutions
  • Regional Rural Banks
  • Scheduled Commercial Banks
  • Non-Banking Financial Companies
  • Self-Help Groups (SHG) Banks

PM SVANidhi Scheme UPSC

PM SVANidhi Scheme, also known as the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi, is a government initiative aimed at supporting and empowering street vendors in India by providing them with access to affordable credit. This scheme is designed to promote their entrepreneurship and enhance their livelihoods, contributing to the overall economic development of the country.

PM SVANidhi is an essential topic for candidates appearing for the UPSC Exam. It is an important topic for aspirants as it relates to the government’s efforts in poverty alleviation, urban development, and inclusive growth strategies. Therefore, candidates should carefully review the information provided here about the government scheme and take notes.

PM SVANidhi Scheme UPSC Question

Practicing the questions can help candidates effectively cover the UPSC Syllabus. The provided list of questions is highly recommended for candidates to practice and improve their preparation level.

Question: Who are the beneficiaries of the ‘PM SVANidhi’ scheme? (A) Urban Shopkeepers, (B) Street Vendors, (C) Enterprenuers, (D) Corporate Employee

Answer: (B) Street Vendors

Question for UPSC Mains: Analyze the impact of the PM SVANidhi scheme on the socio-economic conditions of street vendors in India. Discuss the challenges faced in the implementation of the scheme and suggest measures to overcome them.

Question for UPSC Mains: Discuss the objectives and key features of the PM SVANidhi scheme launched by the Government of India. How does this scheme aim to support the street vendors in urban areas and improve their livelihoods?

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