Union Minister reviews progress of PM SVANidhi Scheme with States, UTs and Banks

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Union Minister reviews progress of PM SVANidhi Scheme with States, UTs and Banks

ANALYSIS

1. Context

• The Union Minister of Housing and Urban Affairs, Shri Manohar Lal, chaired a comprehensive review meeting on the implementation of the PM SVANidhi Scheme.
• Participants included representatives from 33 States/UTs, MoHUA, DFS, and major banks/SLBC conveners.

2. Key Review Areas

• State-wise Progress Assessment: Evaluation of the pace of implementation across States/UTs.
• Operational Challenges: Issues in awareness generation, vendor identification, application processing, and loan disbursement.
• Disposal of Returned Applications: Emphasis on faster turnaround at ULB and bank levels.

3. Strategic Direction Given by the Minister

• Accelerate Awareness Efforts: Broader outreach to ensure eligible street vendors are identified and motivated to apply.
• Speed Up Loan Sanctions & Disbursements: Banks and ULBs instructed to remove bottlenecks and clear pending cases.
• Move Vendors Across Loan Tranches:
  • Facilitate transition from first → second → third tranche.
  • Strengthen vendor creditworthiness and livelihood stability.
• Digital Onboarding:
  • Ensure 100% saturation of beneficiaries on digital platforms.
  • Promote active digital usage by vendors.
• Hygiene & Food Safety Training:
  • Mandatory FSSAI training for street food vendors.

4. New Government Initiative

• Launch of a month-long nationwide campaign:
  SVANidhi Sankalp Abhiyaan
  • Duration: 3rd November – 2nd December 2025
  • Objective: Enhance outreach, application processing, and saturation by ULBs and banks.

5. Government Commitment

• Continued partnership with States, UTs, ULBs, DFS, and the banking ecosystem.
• Ensuring timely, accessible credit support to street vendors and robust on-ground execution.

STATIC PORTION (EXAM-RELEVANT)

About PM SVANidhi Scheme

• Full Form: Prime Minister Street Vendor’s AtmaNirbhar Nidhi.
• Launched: June 2020.
• Objective: Provide collateral-free working capital loans to street vendors.
• Loan Tranches:
  1. 1st Tranche: Up to ₹10,000
  2. 2nd Tranche: Up to ₹20,000
  3. 3rd Tranche: Up to ₹50,000
• Interest Subsidy: 7% per annum on timely repayment.
• Key Features:
  • Incentives for digital transactions.
  • Focus on increasing formal credit access for informal sector vendors.
  • Coordination between ULBs and banks for implementation.

Updated – 24 Oct 2025 ; 7:16 PM | PIB

News Source:PIB