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31 May 2026Economy3 questions

PM SVANidhi: Advancing Financial Inclusion for Street Vendors

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Article summary

The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme has significantly advanced financial inclusion for urban micro-entrepreneurs by providing collateral-free working capital loans. Launched by the Ministry of Housing and Urban Affairs (MoHUA), the scheme facilitates initial loans of ₹10,000, with enhanced tranches of ₹20,000 and ₹50,000 upon timely repayment. It incentivizes digital transactions through cashback and builds credit profiles for street vendors, integrating them into the formal financial system. The initiative also encompasses the 'SVANidhi se Samriddhi' program, linking vendors' families to broader socio-economic welfare schemes, thereby ensuring holistic development and economic resilience.

What this tests

recallTests whether you read the article and retained key facts.
1Q
applicationTests whether you can apply the concept to a new scenario.
1Q
analysisTests whether you can reason across multiple related facts.
1Q

Sample questions — answers revealed after test

EconomyRecallEasy

Q1. With reference to PM SVANidhi scheme, which of the following statements is correctly matched?

ATechnical implementation partner — Small Industries Development Bank of India (SIDBI)
BNodal Ministry — Ministry of Micro, Small and Medium Enterprises (MoMSME)
CInterest subsidy rate — 5% per annum, credited annually through DBT
DMaximum annual cashback for digital transactions — ₹2,400
Answer revealed after you submit the test
EconomyApplicationMedium

Q2. Ramesh is a street vendor who received a ₹10,000 loan under PM SVANidhi and repaid it diligently while exclusively using digital payment modes for his transactions. Which combination of direct financial benefits would he be eligible for under the scheme?

A7% per annum interest subsidy credited quarterly via DBT, and cashback up to ₹1,200 per annum for digital transactions
B4% per annum interest subsidy credited annually via DBT, and cashback up to ₹1,200 per annum for digital transactions
C7% per annum interest subsidy credited quarterly via DBT, and cashback up to ₹2,400 per annum for digital transactions
D7% per annum interest subidy credited monthly via DBT, and eligibility for a ₹20,000 enhanced loan tranche immediately upon application
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EconomyAnalysisHard

Q3. Consider the following statements regarding PM SVANidhi and its broader policy implications: 1. The scheme's collateral-free, escalating loan structure is designed to build formal credit histories for street vendors, reducing long-term dependence on informal moneylenders. 2. The 'SVANidhi se Samriddhi' component extends the scheme beyond micro-credit into a social security integration platform, linking vendor families to other government welfare programmes. 3. The interest subsidy under PM SVANidhi is routed through the implementing banks directly as a reduction in the Equated Monthly Instalment (EMI), making DBT unnecessary. 4. Incentivizing digital transactions among street vendors serves the dual purpose of advancing grassroots financial literacy and formalizing urban informal economic activity. Which of the statements given above are correct?

A1, 2 and 4 only
B1 and 4 only
C2, 3 and 4 only
D1, 2, 3 and 4
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