Everything You Need to Know About PM SVANidhi Scheme

FAQs on PM SVANidhi Scheme

1. What is the PM SVANidhi Scheme?

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a Central Government scheme launched in June 2020 to provide collateral-free working capital loans to street vendors impacted by the COVID-19 pandemic. It aims to help them restart, sustain, or expand their small businesses and promote financial inclusion.

2. What benefits were provided under PM SVANidhi 1.0?

• Initial working capital loan of ₹10,000 with 7% annual interest subsidy.
• Cashback up to ₹1,200 per year for digital transactions.
• Eligible vendors could apply for a second loan of ₹20,000 and a third loan of ₹50,000 upon timely repayment.
• Promoted formalisation and inclusion of street vendors into the formal financial system.

3. How many people benefited under PM SVANidhi 1.0?

As of March 31, 2025:

• 6.81 million beneficiaries covered
• Total disbursement of ₹13,792 crore
• ₹242 crore cashback distributed
• ₹309 crore interest subsidy provided

4. Who is eligible for the scheme?

Any street vendor working in urban areas as on or before March 24, 2020 is eligible. This includes vendors selling food, vegetables, fruits, garments, and those providing small services such as barbering, laundry, or shoe repair.

5. What is new in PM SVANidhi 2.0?

• Working capital loan increased up to ₹50,000.
• Continued 7% annual interest subsidy.
• Introduction of UPI-linked RuPay credit cards with a spending limit of ₹30,000.
• Scheme expected to continue till the end of the 16th Finance Commission period (FY31).

6. Why was PM SVANidhi 2.0 introduced?

With the conclusion of the first phase on March 31, 2025, the government decided to launch an upgraded version — PM SVANidhi 2.0. This aims to build on the success of Phase 1 by offering enhanced credit access, digital empowerment tools, and sustained support for urban street vendors to achieve self-reliance.