Overview
PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a Central Sector Scheme launched on 1 June 2020 by the Ministry of Housing and Urban Affairs (MoHUA) to provide affordable working capital loans to street vendors impacted by the COVID-19 pandemic. The scheme has since been restructured and extended until 31 March 2030, with a total outlay of ₹7,332 crore, aiming to benefit 1.15 crore street vendors including 50 lakh new beneficiaries.
As of January 2026, over 71.57 lakh street vendors have availed first-tranche loans, 27.28 lakh have availed second-tranche loans, and 6.61 lakh have availed third-tranche loans. The total disbursement has crossed ₹14,036 crore, making PM SVANidhi one of the largest micro-credit programmes targeting the urban informal sector.
| Parameter | Details |
|---|---|
| Launch date | 1 June 2020 |
| Extended till | 31 March 2030 |
| Total outlay | ₹7,332 crore |
| Total loans disbursed | ₹14,036 crore (as of Oct 2025) |
| Beneficiaries served | 68+ lakh street vendors |
| First tranche loans availed | 71.57 lakh |
| Second tranche loans availed | 27.28 lakh |
| Third tranche loans availed | 6.61 lakh |
Loan Structure (After Restructuring)
The scheme provides collateral-free working capital loans in three escalating tranches:
| Tranche | Loan Amount | Tenure | Condition |
|---|---|---|---|
| First | Up to ₹15,000 (increased from ₹10,000) | 1 year | Initial loan |
| Second | Up to ₹25,000 (increased from ₹20,000) | 1 year | On timely repayment of 1st tranche |
| Third | Up to ₹50,000 | 1 year | On timely repayment of 2nd tranche |
- Interest subsidy: 7% per annum on the loan amount
- Guarantee cover: Graded guarantee administered by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- No collateral or guarantor required
Beneficiary Identification
- Town Vending Committee (TVC) identifies and issues vending certificates/Identity Cards
- Vendors holding Certificate of Vending (CoV) or Letter of Recommendation (LoR) from Urban Local Bodies are eligible
- Vendors in the survey conducted under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 are eligible
Digital Empowerment
PM SVANidhi has driven significant digital adoption among street vendors:
- Digitally active beneficiaries: Nearly 47 lakh vendors
- Digital transactions: Over 557 crore transactions worth ₹6.09 lakh crore
- Cashback earned: ₹241 crore total cashback for digital payments
- UPI-linked RuPay Credit Cards: Introduced to enable formal credit access; 15,184 applications received and 2,479 cards issued (as of February 2026)
Impact Assessment
According to the impact assessment study conducted by the Indian School of Business (ISB) in 2023 and 2025:
- Average annualised business income among SVANidhi borrowers grew by approximately 20% between 2023 and 2025
- The scheme has brought street vendors into the formal financial system for the first time
- Digital payment adoption has increased transparency and business efficiency
Latest Developments
- January 2026: Cumulative disbursement data shows 71.57 lakh first-tranche, 27.28 lakh second-tranche, and 6.61 lakh third-tranche loans availed.
- 2025 (Restructuring): Cabinet approved restructuring and extension of PM SVANidhi until 31 March 2030, with enhanced loan amounts (₹15,000/₹25,000/₹50,000), total outlay of ₹7,332 crore, and target of 1.15 crore beneficiaries.
- February 2026: UPI-linked RuPay credit cards being rolled out for street vendors; 2,479 cards issued.
- ISB Study (2025): Impact assessment confirmed 20% income growth among SVANidhi borrowers.
Prelims Importance
- PM SVANidhi launched: 1 June 2020; extended till: 31 March 2030
- Type: Central Sector Scheme
- Nodal Ministry: Ministry of Housing and Urban Affairs (MoHUA)
- Total outlay: ₹7,332 crore; Target: 1.15 crore beneficiaries
- Loan tranches: ₹15,000 → ₹25,000 → ₹50,000 (collateral-free)
- Interest subsidy: 7% per annum
- Guarantee cover: CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)
- Beneficiary identification: Town Vending Committee (TVC) under Street Vendors Act, 2014
- Total disbursement: ₹14,036 crore (as of October 2025)
- Over 47 lakh digitally active vendors; 557 crore digital transactions
- Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act enacted: 2014
Mains & Interview Importance
GS Paper 2 (Governance, Social Justice):
- Examine PM SVANidhi as a model for formalising the urban informal sector. How effective are micro-credit interventions in providing sustainable livelihoods?
- Discuss the role of Town Vending Committees under the Street Vendors Act, 2014 in balancing vendor rights with urban planning needs.
GS Paper 3 (Economy):
- Analyse the significance of financial inclusion initiatives like PM SVANidhi in building a digitally empowered informal economy.
- Evaluate the multiplier effect of working capital loans on street vendor incomes and urban economic activity.
Interview Angle: “India has an estimated 50-60 lakh street vendors. PM SVANidhi has reached over 68 lakh vendors with micro-loans, yet only 6.61 lakh have graduated to the third tranche of ₹50,000. What does this dropout pattern tell us about the design of graduated credit programmes for the urban poor?”
Sources: PIB, PM SVANidhi Portal, Insights on India