The Union Ministry of Housing and Urban Affairs (Hardeep Singh Puri) has signed a memorandum of understanding (MoU) with Lucknow based financial institution SIDBI- Small Industries Development Bank of India on 19 June 2020. The Memorandum of understanding (MOU) will provide a boost in building Atmanirbhar Bharat by providing credit or loans to the street vendors across the country for resuming their livelihood activities.

About the Memorandum of understanding

The Memorandum of understanding authorizes SIDBI as the implementing agency for the Pradhan Mantri AtmaNirbhar Nidhi (PM SVANidhi) scheme. The scheme will be under the guidelines set up by the Ministry of Housing and Urban Affairs (Hardeep Singh Puri).


The PMSVANidhi was launched on 1st June 2020 by the MOHUA with a target to provide financial support to more than 50 lakh street vendors across the country. A street vendor can avail a loan of up to Rs 10,000 under the scheme which has to be repaid within a period of one year, there will be no penalty for early repayment of the loan amount. For repayment of loan or credit, monthly installments can be availed by the seller.

The interest on the loan amount will be 7%, which however will be credited back on a quarterly basis to the bank accounts on the beneficiary as interest subsidy if the beneficiary is able to make timely repayment of the loan amount.

The scheme will be provided in a phased manner, with a total of 108 cities being selected for the first phase which is expected to commence in the month of July 2020.

To ensure collateral-free credit under the scheme, the credit guarantee for the lending institutions will be managed by SIDBI (Small Industries Development Bank of India) through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

MOU for Special Micro Credit Facility MOU for Special Micro Credit Facility