The Modi Government supports street vendors in expanding their businesses through the PM SVANidhi scheme, launched on June 1, 2020, amid the COVID-19 pandemic. This initiative offers vendors financial assistance at low interest rates, with loans available in amounts of Rs 15,000, 25,000, or 50,000. The scheme includes a 7% interest subsidy for timely repayments and provides cashback of up to Rs 1,600 annually for digital payment usage. There are no pre-closure fees associated with the loans. Street vendors with a Certificate of Vending or an Identity Card from Urban Local Bodies (ULBs) are eligible to apply.
Additionally, vendors not captured in surveys or new vendors can seek loans with a Letter of Recommendation (LoR) from ULBs or Town Vending Committees (TVCs). Applications can be submitted online via the PM SVANidhi portal or at Common Service Centres (CSCs). Loans are disbursed through banks, NBFCs, microfinance institutions, and SHG banks, requiring basic KYC documents like Aadhaar or voter ID. This scheme facilitates the establishment and growth of street vendors’ businesses by providing financial support and promoting digital transactions, and it is accessible to all qualified vendors, including those overlooked in previous surveys.