PM SVANidhi Scheme
Affordable working-capital loans for urban street vendors.
The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched on 1 June 2020. It is a micro-credit scheme that provides affordable working-capital loans to urban street vendors to help them restart their livelihoods that were adversely affected by the COVID-19 pandemic.
Scheme at a Glance
| Launched | 1 June 2020 |
| Lead Ministry | Ministry of Housing & Urban Affairs (MoHUA) |
| Beneficiaries | Urban street vendors |
| First Loan | Up to ₹10,000 (collateral-free) |
| Loan Tenure | 1 year, repayable in instalments |
Key Features
- Collateral-free working-capital loan starting at ₹10,000, with enhanced limits on timely repayment (₹20,000 and ₹50,000).
- Interest subsidy of 7% per annum on timely repayment.
- Cashback incentives to promote digital transactions.
- Aims to formalise street vendors and bring them into the financial mainstream.
- SVANidhi stands for Street Vendor's AtmaNirbhar Nidhi.
- The scheme promotes a digital footprint and credit history for vendors.
- A linked component, SVANidhi se Samriddhi, connects vendors and their families with other welfare schemes.
Practice MCQs
Q1. In which year was PM SVANidhi launched?
a) 2018 b) 2019 c) 2020 d) 2021
Answer: c) 2020
Q2. PM SVANidhi primarily benefits:
a) Farmers b) Urban street vendors c) Students d) Senior citizens
Answer: b) Urban street vendors
Q3. What is the amount of the first loan under PM SVANidhi?
a) ₹5,000 b) ₹10,000 c) ₹20,000 d) ₹50,000
Answer: b) ₹10,000
Q4. Which ministry implements PM SVANidhi?
a) Ministry of Finance b) Ministry of Housing & Urban Affairs c) Ministry of Rural Development d) Ministry of Labour
Answer: b) Ministry of Housing & Urban Affairs
Q5. SVANidhi stands for:
a) Street Vendor's AtmaNirbhar Nidhi b) Savings Vendor Nidhi c) Self Vendor Nidhi d) Small Vendor Aid Nidhi
Answer: a) Street Vendor's AtmaNirbhar Nidhi