Launched in June 2020 by the Ministry of Housing and Urban Affairs (MoHUA), this Central Sector Scheme provides affordable working capital loans to street vendors. Extended until 2030, it aims to formalize the informal economy and foster sustainable urban livelihoods.
Key Operational Details
- Nodal Agency: Small Industries Development Bank of India (SIDBI).
- Loan Structure: Graded, collateral-free loans:
- 1st Loan: Up to ₹10,000 (12 months tenure).
- 2nd Loan: Up to ₹20,000 (18 months tenure).
- 3rd Loan: Up to ₹50,000 (36 months tenure).
- Incentives:
- Interest Subsidy: 7% per annum on prompt repayment.
- Digital Transactions: Monthly cashback rewards for UPI/QR-based transactions.
- No Penalty: No charges for early repayment.
- Documentation: Provides Certificate of Vending (CoV) or Letter of Recommendation (LoR) for vendors not in official surveys.
SVANidhi se Samriddhi
An outreach component that links vendors and their families to eight central welfare schemes, including:
- Insurance: PM Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana.
- Pension/Social Security: PM Shram Yogi Maandhan Yojana, BOCW Act registration.
- Other: PM Jan Dhan Yojana, NFSA (One Nation One Ration Card), Janani Suraksha Yojana, and PM Matru Vandana Yojana.
IASPOINT Booster Facts
- Alignment: Complements the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM).
- Digital Integration: Linked with the Udyam Mitra portal for business guidance.
- Impact: Over 75 lakh beneficiaries; total disbursements exceed ₹17,800 crore.