PM SVANidhi has crossed more than 1.12 crore loan disbursals worth over ₹17,800 crore, with the street vendor support scheme now moving beyond collateral-free credit into formal finance and digital payments, according to a government statement issued on Friday, 29 May.
The scheme has benefited more than 75.5 lakh street vendors across cities and towns since its launch in June 2020.
It was introduced as a micro-credit initiative for street vendors with government-backed credit guarantee support, aimed at supporting “Swarozgar, Svavlamban and Swabhimaan” among vendors working in India’s informal urban economy.
Street vendors form a key part of India’s everyday urban economy, ranging from vegetable sellers and tea vendors to fruit cart owners and cobblers.
However, many had limited access to formal credit and were often dependent on informal borrowing at high interest rates.
Under PM SVANidhi, collateral-free working capital loans are provided in three progressive tranches of ₹15,000, ₹25,000 and ₹50,000.
Read also: India emerges as top growth bet in WEF survey as global economy faces energy and food price shockv
The scheme also includes interest subsidy and credit guarantee support, helping vendors build repayment history and access formal finance.
The programme has also become a major digital inclusion platform. More than 55 lakh street vendors have been onboarded digitally under the scheme.
Together, beneficiaries have carried out over 841 crore digital transactions worth nearly ₹8.96 lakh crore.
They have also received nearly ₹800 crore through digital cashback incentives and interest subsidies.
To encourage digital payments, the scheme provides cashback incentives of up to ₹1,600 to street vendors for retail and wholesale digital transactions. Vendors who successfully repay the second tranche are also eligible for UPI-linked RuPay Credit Cards with limits of up to ₹30,000.
The scheme also includes SVANidhi se Samriddhi, under which socio-economic profiling of beneficiaries and their families is carried out to link them with eight selected Central welfare schemes.
This adds a welfare-linkage component to the programme, alongside its main focus on credit access and digital adoption.
Independent impact assessments conducted in 2023 and 2025 found that nearly 95 per cent of beneficiaries accessed formal institutional credit for the first time under PM SVANidhi.
Around 30 per cent later accessed additional credit beyond SVANidhi loans, reflecting improved creditworthiness and financial inclusion.
Beneficiary incomes recorded an average annual increase of nearly 20 per cent.
The scheme has also shown strong social inclusion indicators. Nearly 46 per cent of beneficiaries are women, while around 70 per cent belong to marginalised communities.
The economic gains under the scheme have supported housing stability and improved access to nutritious food, healthcare and education.
The scheme has been extended until March 2030, building on its loan disbursal, digital payment and welfare-linkage outcomes.
Its expansion signals a broader policy shift in which street vendors are being treated not only as beneficiaries of credit support but also as active participants in urban economic growth, digital transactions and formal financial systems.
Read also: India, Canada aim to conclude free trade pact talks by 2026-end as trade relations regain momentum
