PM SVANidhi Scheme Supports Street Vendors With ₹17,115 Crore Loans

Access to formal credit has long remained a challenge for India’s street vendors, who largely depend on informal lenders charging high interest rates. To address this gap, the government launched the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme in June 2020, aimed at providing small working-capital loans without collateral.

According to recent government data shared in Parliament, the scheme has disbursed over one crore loans worth ₹17,115 crore to street vendors so far, highlighting its growing role in improving financial inclusion and livelihood stability in urban India.

What Is the PM SVANidhi Scheme?

PM SVANidhi is a micro-credit programme designed to help urban street vendors restart or expand businesses disrupted during the pandemic. The scheme provides collateral-free working capital loans, allowing vendors to buy inventory and maintain daily operations without relying on informal borrowing.

The loan structure works in stages:

• First loan: up to ₹15,000
• Second loan: up to ₹25,000
• Third loan: up to ₹50,000 (after timely repayment)

Borrowers also receive a 7% annual interest subsidy credited directly to their bank accounts for prompt repayment, encouraging credit discipline and reducing borrowing costs.

How the Scheme Promotes Financial Inclusion?

Beyond lending, PM SVANidhi aims to integrate street vendors into the formal financial ecosystem. Beneficiaries are encouraged to adopt digital payments, with cashback incentives for transactions conducted through digital platforms.

This approach serves multiple purposes:

• Reduces dependence on cash-based informal lending
• Builds credit history for future borrowing
• Improves access to banking and government welfare schemes

The initiative has gradually transformed many vendors from unbanked workers into formal borrowers with verifiable financial records.

Expansion and Future Coverage

Recognising its impact, the government has extended and restructured the scheme. The lending period now runs until March 31, 2030, with a target to benefit 1.15 crore street vendors, including millions of new beneficiaries across urban and peri-urban areas.

The expansion reflects a broader policy push to strengthen self-employment and support India’s informal economy, which employs a significant share of the urban workforce.

Conclusion

The disbursement of ₹17,115 crore under PM SVANidhi signals more than just loan distribution—it marks a shift toward formalising small urban businesses. By combining easy credit, interest subsidies, and digital incentives, the scheme is helping street vendors transition from survival-based livelihoods to financially resilient micro-entrepreneurs.

As participation grows and repayment records strengthen, PM SVANidhi is increasingly becoming a cornerstone of India’s financial inclusion strategy for the informal sector.