Things to know about PM SVANidhi Scheme | Fusion - WeRIndia

Things to know about PM SVANidhi Scheme

Things to know about PM SVANidhi Scheme

To help street vendors, the central government launched Street Vendor’s Atma Nirbhar Nidhi (SVANidhi) Scheme in June 2020.

The scheme aims to provide working capital loans of up to ₹10,000 to street vendors and hawkers.

Under this scheme, street vendors and hawkers can obtain collateral-free loans with a low-interest rate.

Here are some important things to know about PM SVANidhi Scheme:


  • PM SVANidhi Scheme aims to empower street vendors by providing collateral-free loans.
  • Those who repay the loan are incentivized with a subsidy in interest. The scheme provides an interest subsidy of 7% per annum for them, which will be credited quarterly. The subsidy will be available up to March 31st, 2022.
  • All commercial banks, cooperative banks, regional rural banks, small finance banks etc., will offer this loan. The interest rate depends on their existing rates of interest.
  • Besides, Non-Banking Financial Companies (NBFCs) and Non-Banking Financial Company-Micro Finance Institution (NBFC-MFIs) also offer loans. Their interest rates are based on the guidelines of the RBI prescribed for each of them.
  • It encourages digital transactions and rewards them with monthly cashback offers in the range of ₹50 to ₹
  • The tenure of the loan is one year. Borrowers have to repay the loan in monthly instalments.
  • There is no prepayment penalty or foreclosure charge for this loan. Rather they will be eligible for an additional loan with an enhanced limit.
  • The street vendors who repay their loans on time or before the tenure will be eligible for the next cycle of the working capital loan.
  • All street vendors who were active in urban areas on or before 24 March 2020 can get this loan. In other words, they are eligible to get the loan. Those who want to obtain this loan have to submit their KYC documents.

Image from Pxhere (Free for commercial use / CC0 Public Domain)


Image Reference: https://pxhere.com/en/photo/1160871

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