Scheme for Street Vendors -Striving towards PM Street Vendor’s Atmanirbhar SVANidhi {Striving for Atmanirbhar Bharat }

Scheme for Street Vendors -Striving towards

PM Street Vendor’s Atmanirbhar SVANidhi

{Striving for Atmanirbhar Bharat }

SERIES 605                           Date June 20, 2020


In this editorial author shall discuss about:

v SIDBI as the Implementation Agency.

v Scheme target to benefit over 50 lakh Street Vendors, who had been vending on or before March 24, 2020.

v Scheme is for period till March, 2022

v Street vendors vending in urban areas from surrounding peri-urban, rural areas will be benefitted under urban livelihoods programme for the 1st time.

v Credit limit will be escalated on timely/ early repayment of loan to help the vendor achieve his ambition of going up on the economic ladder.

[1]Posted on June 19, 2020 by PIB Delhi.


·      A Memorandum of Understanding has been signed between Ministry of Housing & Urban Affairs and Small Industries Development Bank of India (SIDBI), here today, in order to engage SIDBI as the Implementation Agency for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) - a Special Micro-Credit Facility for Street Vendors. The MoU was signed by Shri Sanjay Kumar, Joint Secretary on behalf of Ministry of Housing and Urban Affairs (MoHUA) and Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI, in the presence of Shri Hardeep S. Puri, Hon’ble Minister of State (Independent Charge) MoHUA.


·      As per the MoU terms, SIDBI will implement the PM SVANidhi Scheme under the guidance of MoHUA. It will also manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). It will develop and maintain a customized and integrated IT Platform providing end-to-end solutions, including documentation of all the processes and workflows for an end-to-end solution, through a Portal and a Mobile App, to ensure engagement and information flow between Urban Local Bodies (ULBs), Lending Institutions, Digital Payment Aggregators and other stakeholders.

·      It will leverage the network of lending Institutions like Scheduled Commercials Banks (SCBs), Non-Bank Finance Companies (NBFCs), Micro Finance Institutions (MFIs), Co-operative Banks, Small Finance Banks (SFBs), Regional Rural Banks (RRBs), etc. for the Scheme implementation.

·      With a view to ensure effective implementation, SIDBI shall also provide a Project Management Unit (PMU), comprising of  domain experts in training/ capacity building, project and platform management, Information Education and Communication (IEC), banking, NBFC and MFI sectors etc., for the period of PM SVANidhi i.e. upto March 2022. 

·      It is pertinent to mention that PM SVANidhi was launched by the Ministry of Housing and Urban Affairshad, on June 01, 2020for providing affordable Working Capital loan to street vendors to resume their livelihoodsthat have been adversely affected due to Covid-19 lockdown.This scheme targets to benefit over 50 lakh Street Vendors. Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year. On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis. There will be no penalty on early repayment of loan.The scheme promotes digital transactions through cash back incentives up to an amount of Rs. 100 per month. Moreover, the vendors can achieve their ambition of going up on the economic ladder by availning the facility of escalation of the credit limit on timely/ early repayment of loan.

·      Ministry has already circulated the Guidelines of the Scheme to all stakeholderse.g. States and other stakeholders, including Banks, MFIs, NBFCs, SIDBI and Street Vendors’ Associations to sensitize them about their role and respeonsibilties. The integrated IT platform for PM SVANidhi is likely to be launched by forth week of June, 2020. In the first phase, 108 cities have been selected, in consultation with States/Uts, for saturation by September 2020. Disbursement of loan is planned to commence in July, 2020




Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at ‘


Disclaimer: The entire contents of this document have been prepared based on the relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.



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