The PM (Prime Minister) SVANidhi Scheme was recently introduced by the Ministry of Housing and Urban Affairs on 1st June 2020, in response to the financial plight of the street vendors and hawkers, who has been adversely affected by the COVID 19 pandemic as well as the lockdown.


Street vendors and hawkers in urban areas and its surrounding peri-urban and rural areas who :

(i) possess a Certificate of Vending /Identity Card issued by Urban Local Bodies(ULB)

(ii) have been identified by the survey. Provisional Certificate of Vending will be issued.

(iii) are in the urban areas and surrounding peri-urban and rural areas possessing Letter Of Recommendation by ULB or Town Vending Committee(TVC) 

Details of the Scheme

This has been designed to provide an initial working capital loan of up to Rs.10,000/- for 1 year with a subsidized rate of interest, to the beneficiaries to start their businesses after the lockdown, with the option of renewal of the loan, the maximum amount going up to Rs.20,000/- the next year, considering factors like timely and early repayment of the same. It also aims at providing certain incentives like ‘cashback’ for using digital transaction methods. Also, the vendors would be able to avail a 7% interest subsidy. The implementation of the scheme would be operational till March 2022.

Application Method

To avail the scheme the beneficiaries have to fill out an online form on the government portal and also submit relevant documents. One may avail the help of a Banking Correspondent /Agent of the Micro Finance Institution (MFI) in their area.

Scheme as a boon

In times of uncertainty due to the COVID 19 pandemic and lockdown where businesses have been stalled suddenly, the worst sufferers amongst them are the vendors or hawkers who usually have very little capital amount to sustain their business and livelihoods. It is but natural to assume that their finances must have run dry due to the long stretch of lockdown period. Hence this scheme comes as a boon to such vendors to start afresh with help and motivation from the Central Government.

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