Introduction: Empowering Street Vendors through Financial Inclusion

The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched by the Ministry of Housing and Urban Affairs (MoHUA) on June 1, 2020, to provide financial assistance to street vendors. It was needed to provide affordable, collateral-free working capital loans to street vendors, particularly those impacted by the COVID-19 pandemic, allowing them to resume their businesses and livelihoods by offering financial support to restart their operations with minimal barriers to access credit; essentially aiming to uplift the economic status of this crucial segment of the informal urban economy by facilitating their participation in the formal financial system. The scheme aims to formalise street vendors, provide access to credit, promote digital transactions, and ensure financial inclusion in urban economies. The scheme intends to facilitate collateral-free working capital loans of up to INR10,000/- of one-year tenure, to approximately 50 lakh street vendors, to help resume their businesses in the urban areas, including surrounding peri-urban/rural areas.

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