More than 75.5 lakh street vendors have accessed over 112 lakh loans under the PM SVANidhi scheme. The loans, totaling more than Rs 17,800 crore, have been distributed to street vendors nationwide. Additionally, beneficiaries have received nearly Rs 800 crore through interest subsidies and digital cashback incentives.
Around 46% of the beneficiaries are women, and approximately 70% belong to marginalized communities. The scheme has played a crucial role in strengthening micro-enterprises, local supply chains, and integrating vendors with Urban Local Bodies, as per official information.
PM SVANidhi was initiated during the COVID-19 pandemic to offer affordable working capital loans to street vendors facing severe business disruptions. It is the first dedicated micro-credit scheme for street vendors, aiming to boost their businesses and enhance financial inclusion.
The government has approved the restructuring and extension of PM SVANidhi due to its significant achievements and impact. The lending period has now been prolonged until March 2030. Street vendors, engaged in vending various goods and services, receive collateral-free working capital loans ranging from Rs 15,000 to Rs 50,000 through progressive tranches.
The scheme also includes provisions for interest subsidy, credit guarantee support, and UPI-linked RuPay Credit Cards up to Rs 30,000 for eligible vendors. It encourages timely loan repayment by offering a 7% per annum interest subsidy. Vendors who repay on time become eligible for higher loan amounts in subsequent cycles.
PM SVANidhi promotes digital transactions through cashback incentives up to Rs 1,600 and provides financial literacy support. More than 55 lakh vendors have completed over 841 crore digital transactions worth nearly Rs 8.96 lakh crore. Furthermore, the scheme offers training in financial literacy, digital literacy, and food safety practices in collaboration with FSSAI, benefiting around 6 lakh street food vendors.
