UPSC Prelims Practice Questions — PM SVANidhi Completes Six Years of Empowering Street Vendors Through Access to Affordable Credit and Social Security

Question 1

With reference to the PM SVANidhi scheme, consider the following statements about its original design and mandate:
1. It was launched by the Ministry of Housing & Urban Affairs.
2. It provides collateral-free micro-credit to urban street vendors.
3. It was launched in June 2020 in the aftermath of the COVID-19 pandemic.
4. Its primary target group is rural landless agricultural labourers.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1 and 2 only

Answer

3 and 4 only

Answer

1, 2, 3 and 4

Question 2

As highlighted in official communications in 2026, PM SVANidhi completed how many years since its launch?

Accepted Answer

Six years

Answer

Five years

Answer

Seven years

Answer

Ten years

Question 3

With reference to the original loan tranche structure of PM SVANidhi, consider the following:
1. A first tranche of up to ₹10,000.
2. A second tranche of up to ₹20,000.
3. A third tranche of up to ₹50,000.
4. A fourth tranche of up to ₹75,000.
Which of the above is/are NOT correct?

Accepted Answer

4 only

Answer

1 and 2 only

Answer

3 only

Answer

2 and 4 only

Question 4

Under the original PM SVANidhi design, what is the maximum amount of the largest (third) working-capital loan tranche?

Accepted Answer

₹50,000

Answer

₹20,000

Answer

₹75,000

Answer

₹1,00,000

Question 5

Under PM SVANidhi, the digital cashback incentive of up to ₹1,200 per year is provided to a beneficiary for which one of the following?

Accepted Answer

Undertaking eligible digital/UPI transactions

Answer

Timely repayment of the loan instalments

Answer

Enrolling family members in social-security schemes

Answer

Registering the vending unit on an e-commerce portal

Question 6

Which one of the following is the credit instrument newly introduced under the restructured PM SVANidhi, provided exclusively to beneficiaries who have timely repaid their second loan?

Accepted Answer

UPI-linked RuPay Credit Card

Answer

Kisan Credit Card

Answer

BHIM-Aadhaar debit card

Answer

PMJDY RuPay debit card

Question 7

With reference to the December 2024 restructuring of PM SVANidhi approved by the Union Cabinet, consider the following:
1. A total outlay of ₹7,332 crore.
2. Extension of the lending period up to 31 March 2030.
3. A target of 1.15 crore beneficiaries including 50 lakh new beneficiaries.
4. Transfer of sole nodal responsibility for the scheme to NITI Aayog.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1 and 3 only

Answer

2 and 4 only

Answer

1, 2, 3 and 4

Question 8

In the context of PM SVANidhi loans, the term 'collateral-free' precisely means that the loans are:

Accepted Answer

Advanced without requiring any security, guarantor or asset as collateral

Answer

Advanced entirely free of interest to the vendor

Answer

Fully waived off after a fixed vending period

Answer

Sanctioned only against pledge of the vendor's business premises

Question 9

In the six-year review of PM SVANidhi, the figure of 'nearly 95%' cited refers to the share of beneficiaries who:

Accepted Answer

Accessed formal institutional credit for the first time

Answer

Are women vendors

Answer

Belong to marginalised communities

Answer

Have completed repayment of all three tranches

Question 10

PM SVANidhi, whose six-year progress was reviewed in 2026, is the flagship street-vendor scheme of which single Union Ministry?

Accepted Answer

Ministry of Housing & Urban Affairs

Answer

Ministry of Finance

Answer

Ministry of Rural Development

Answer

Ministry of Labour & Employment

Question 11

Under the restructured PM SVANidhi, which department shares implementation responsibility with MoHUA and is specifically tasked with facilitating access to loans and credit cards through banks and financial institutions?

Accepted Answer

Department of Financial Services

Answer

Department of Economic Affairs

Answer

Department of Expenditure

Answer

Department for Promotion of Industry and Internal Trade

Question 12

Consider the following statements comparing PM SVANidhi with the Pradhan Mantri MUDRA Yojana (PMMY):
1. Unlike PM SVANidhi, which is a Ministry of Housing & Urban Affairs scheme, PMMY is administered under the Ministry of Finance.
2. Both PM SVANidhi and PMMY extend collateral-free loans.
3. PM SVANidhi offers a larger maximum loan amount than PMMY.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

UPSC Prelims Practice Questions — PM SVANidhi Completes Six Years of Empowering Street Vendors Through Access to Affordable Credit and Social Security

Q2. As highlighted in official communications in 2026, PM SVANidhi completed how many years since its launch?

Q3. With reference to the original loan tranche structure of PM SVANidhi, consider the following: 1. A first tranche of up to ₹10,000. 2. A second tranche of up to ₹20,000. 3. A third tranche of up to ₹50,000. 4. A fourth tranche of up to ₹75,000. Which of the above is/are NOT correct?

Q4. Under the original PM SVANidhi design, what is the maximum amount of the largest (third) working-capital loan tranche?

Q5. Under PM SVANidhi, the digital cashback incentive of up to ₹1,200 per year is provided to a beneficiary for which one of the following?

Q6. Which one of the following is the credit instrument newly introduced under the restructured PM SVANidhi, provided exclusively to beneficiaries who have timely repaid their second loan?

Q8. In the context of PM SVANidhi loans, the term 'collateral-free' precisely means that the loans are:

Q9. In the six-year review of PM SVANidhi, the figure of 'nearly 95%' cited refers to the share of beneficiaries who:

Q10. PM SVANidhi, whose six-year progress was reviewed in 2026, is the flagship street-vendor scheme of which single Union Ministry?

Q11. Under the restructured PM SVANidhi, which department shares implementation responsibility with MoHUA and is specifically tasked with facilitating access to loans and credit cards through banks and financial institutions?