Scheme of Special Micro-Credit Facility launched for Street Vendors

New Delhi, June 19, 2020: A Memorandum
of Understanding was
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
Sanjay Kumar, Joint Secretary
on behalf of Ministry of
Housing and Urban Affairs
(MoHUA) and V. Satya
Venkata Rao, Deputy Managing
Director, SIDBI in the
presence of Hardeep S. Puri,
Minister of State (Independent
Charge) MoHUA.
As per the MoU terms,
SIDBI will implement the
PM SVANidhi Scheme
under the guidance of
It will also manage the
credit guarantee to the lending
institutions through
Credit Guarantee Fund Trust
for Micro and Small Enterprises
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
It will leverage the network
of lending Institutions
like Scheduled Commercials
Banks (SCBs), Non-Bank
Finance Companies
(NBFCs), Micro Finance
Institutions (MFIs), Cooperative
Banks, Small
Finance Banks (SFBs),
Regional Rural Banks
(RRBs) etc. for the Scheme
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.
PM SVANidhi was
launched by the Ministry of
Housing and Urban Affairshad
on June 1, 2020 for
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
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
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.
The Ministry has already
circulated the Guidelines of
the Scheme to all stakeholders
e.g. States and other
stakeholders, including
Banks, MFIs, NBFCs,
SIDBI and Street Vendors’
Associations to sensitize
them about their role and
The integrated IT platform
for PM SVANidhi is likely
to be launched by the fourth
week of June, 2020.
In the first phase, 108
cities have been selected, in
consultation with States/Uts,
for saturation by September
Disbursement of loan is
planned to commence in
July, 2020.

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