The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme has completed one year of its restructured phase, marking a shift from providing only working-capital loans to creating a broader ecosystem of financial inclusion, social security, digital empowerment and entrepreneurship development for street vendors.
The scheme aims to integrate street vendors into the formal financial system while improving their livelihood opportunities and reducing dependence on informal sources of credit.
What is PM SVANidhi Scheme?
The PM SVANidhi Scheme was launched in June 2020 by the Ministry of Housing and Urban Affairs (MoHUA) during the COVID-19 pandemic to provide collateral-free working capital loans to street vendors.
The scheme was introduced to:
- Support street vendors affected by economic disruptions.
- Reduce dependence on high-interest informal loans.
- Promote digital payments and financial inclusion.
- Encourage formalisation of the urban street-vending ecosystem.
It is implemented as a 100% centrally funded Central Sector Scheme under MoHUA.
Restructured PM SVANidhi Scheme
The Union Cabinet approved the restructuring of PM SVANidhi in August 2025, extending the lending period up to 31 March 2030.
The revised scheme aims to cover around 1.15 crore street vendors, including nearly 50 lakh new beneficiaries.
The restructured approach focuses on:
- Formal credit access.
- Digital financial services.
- Social security coverage.
- Capacity building.
- Entrepreneurship promotion.
Who are Eligible Beneficiaries?
The scheme covers:
- Urban street vendors.
- Peri-urban and rural vendors operating within municipal limits.
- Hawkers and thelewalas.
- Informal service providers such as barbers, cobblers and laundry workers.
Eligible vendors include those having:
- Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs).
- Verified Letter of Recommendation (LoR) issued by ULBs or Town Vending Committees (TVCs).
- Vendors identified through surveys or operating in Census Towns under the expanded coverage approach.
Graduated Working Capital Loan Facility
PM SVANidhi follows a progressive credit model where vendors can access higher loans based on repayment performance.
First Tranche
- Loan amount up to ₹15,000.
- Repayment period of 12 months.
- No collateral requirement.
Second Tranche
- Loan increased up to ₹25,000.
- Available after timely repayment of the first loan.
- Repayment period of 18 months.
Third Tranche
- Loan facility up to ₹50,000.
- Repayment period of 36 months.
- No prepayment penalty.
This graded approach encourages credit discipline and helps vendors gradually build financial credibility.
Interest Subsidy and Digital Payment Incentives
To encourage formal banking behaviour, the scheme provides:
- 7% annual interest subsidy transferred quarterly through Direct Benefit Transfer (DBT) for eligible accounts.
- Monthly cashback incentives of up to ₹100 for promoting digital transactions.
The scheme also introduces a UPI-linked RuPay Credit Card facility with:
- Initial credit limit of ₹10,000.
- Expansion possibility up to ₹30,000.
- Five-year validity.
- Eligibility after successful repayment of the second loan tranche.
Technology-Based Reforms
PM SVANidhi has adopted digital solutions to simplify access to credit.
The Digital Lending Platform (DLP) provides an end-to-end process covering:
- Application submission.
- Verification.
- Loan approval.
- Digital disbursement.
The Vendor Migration Module allows vendors shifting between Urban Local Bodies and Census Towns to transfer their Letters of Recommendation, ensuring continuity of benefits.
The City Region Approach has expanded coverage beyond traditional urban areas by including Census Towns.
SVANidhi se Samriddhi Initiative
To transform PM SVANidhi into a comprehensive welfare programme, MoHUA launched “SVANidhi se Samriddhi”.
Its objective is to map the socio-economic conditions of beneficiaries and connect them with government welfare schemes.
The initiative provides access to eight major schemes including:
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
- Pradhan Mantri Suraksha Bima Yojana (PMSBY).
- PM Jan Dhan Yojana.
- PM Shram Yogi Maandhan Yojana.
- One Nation One Ration Card (ONORC).
- Janani Suraksha Yojana.
- PM Matru Vandana Yojana.
- Building and Other Construction Workers (BoCW) registration.
Impact and Future Initiatives
During the first year of restructuring:
- Around 21.86 lakh loans worth ₹6,294 crore were provided to 10.56 lakh new beneficiaries.
Since inception:
- Nearly 78.68 lakh vendors have accessed more than 1.18 crore loans.
- Interest subsidies and digital payment incentives have supported financial empowerment.
Additional initiatives include:
- PM SVANidhi Startup Challenge to encourage solutions in digital payments, logistics and market access.
- Development of 50 Street Food Hubs with financial assistance.
- Lok Kalyan Melas connecting vendors with banks and government agencies.
- Food safety training for more than 6 lakh street-food vendors through FSSAI programmes.
Conclusion
PM SVANidhi has evolved from a simple credit-support programme into a comprehensive livelihood empowerment initiative for India’s street vendors.
By combining formal credit, digital inclusion, social security and entrepreneurship support, the scheme strengthens the economic resilience of millions of informal workers.
The initiative represents an important step towards building an inclusive urban economy and achieving the vision of Atmanirbhar Bharat through grassroots entrepreneurship.
Frequently Asked Questions About PM SVANidhi Scheme
What is the PM SVANidhi Scheme?
PM SVANidhi is a Central Sector Scheme launched in June 2020 to provide collateral-free working capital loans and promote financial inclusion among street vendors.
Who is eligible for PM SVANidhi?
The scheme covers eligible urban, peri-urban and rural street vendors, including hawkers, thelewalas and informal service providers such as barbers, cobblers and laundry workers.
What is the maximum loan amount under PM SVANidhi?
Eligible vendors can progressively access loans of up to ₹15,000 in the first tranche, ₹25,000 in the second tranche and ₹50,000 in the third tranche, based on repayment performance.
What benefits does PM SVANidhi provide besides loans?
The scheme provides an interest subsidy of 7%, digital payment incentives, access to social security schemes and opportunities for entrepreneurship and skill development.
What is SVANidhi se Samriddhi?
SVANidhi se Samriddhi is an initiative under PM SVANidhi that connects street vendors and their families with various government welfare and social security schemes based on their socio-economic profiles.
