About the scheme

• PM SVANidhi was launched by the Ministry of Housing and Urban Affairs for providing affordable Working Capital loan to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown.
• Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year. 
• On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis. There will be no penalty on early repayment of loan.
• If the vendor repays the instalments in time or earlier, they will develop his credible credit score that makes him eligible for a higher amount of term loan to 20 thousand rupees and so on.
• The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month.
• The scheme targets to benefit over 50 lakh street vendors, who had been vending on or before 24th March this year, in urban areas. The duration of the scheme is till March 2022.
• SIDBI will implement the PM SVANidhi Scheme under the guidance of MoHUA.
• The lending institutions under the Scheme include Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, NBFCs, Microfinance institutions and Self Help Group banks.