PM-SVANIDHI (Syllabus: GS Paper 2 – Govt Scheme)

News-CRUX-10     15th March 2024        

Context: Recently, the Prime Minister of India laid the foundation stone for two new Delhi Metro corridors and distributed cheques to five beneficiaries of the PM-SVANidhi scheme.


  • About: It is a central sector scheme to provide to provide a small working capital loan a scheme for street vendors.
  • Launched: June 01, 2020
  • Nodal Ministry: Ministry of Housing and Urban Affairs.
  • Implementing Agency: Small Industries Development Bank of India (SIDBI)
  • Objective:

oTo facilitate and provide working capital loans up to Rs.10,000 at a subsidised rate of interest, 

oTo incentivise regular repayment of the loan, and 

oTo reward digital transactions.

oIntroduction of 3rd term loan of up to ₹50,000 in addition to 1st & 2nd loans of ₹10,000 and ₹20,000 respectively.

  • Lending Agencies: Microfinance Institutions, Non-Banking Financial Companies, Self Help Groups 
  • Eligible for the Loan: Vendors with vending experience dating back to or before March 24, 2020, and possessing a vending certificate are eligible for the loan.
  • The Street Vendors Act 2014: It mandates Town Vending Committees, consisting of local authorities and area vendors, to issue vending certificates following a comprehensive survey of all vendors.
  • Funding: It is a Central Sector Scheme.
  • A recent study: SBI has hailed the performance of the scheme stating that 43% beneficiaries are women street vendors. Moreover 44% of the PM SVANidhi beneficiaries belong to OBC category, while Scheduled Castes and Scheduled Tribes account for 22%.
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