PM SVANidhi Crosses Major Milestone, Benefits Over 75 Lakh Street Vendors

New Delhi — The Centre's flagship PM SVANidhi scheme has emerged as a major support system for street vendors across the country, with more than 75.5 lakh beneficiaries availing over 112 lakh loans since its launch, according to an official fact sheet.

Under the scheme, loans worth more than ?17,800 crore have been disbursed, while beneficiaries have received nearly ?800 crore through interest subsidies and digital cashback incentives.

The data highlights the scheme's inclusive reach, with women accounting for nearly 46 per cent of beneficiaries and around 70 per cent belonging to marginalized communities. The initiative has played a significant role in strengthening micro-enterprises, supporting local supply chains and improving the integration of street vendors with urban local bodies.

Launched during the COVID-19 pandemic, the PM SVANidhi scheme was designed to provide affordable working capital to street vendors whose livelihoods were severely impacted by lockdowns and economic disruptions.

As India's first dedicated micro-credit programme for street vendors, the scheme has sought to improve access to formal financial services while helping small businesses expand and become more resilient.

Recognizing its success, the government has approved the restructuring and extension of the scheme, with the lending period now extended until March 2030.

The scheme covers individuals engaged in selling goods or providing services from streets, pavements, footpaths or temporary structures. This includes vendors selling fruits, vegetables, street food and daily-use items, as well as service providers such as barbers, cobblers and laundry workers.

Eligible vendors can access collateral-free working capital loans in progressive stages of ?15,000, ?25,000 and ?50,000. Additional benefits include interest subsidies, credit guarantee support and UPI-linked RuPay Credit Cards with a limit of up to ?30,000.

To encourage responsible borrowing, the scheme offers a 7 per cent annual interest subsidy for timely repayments. Vendors who repay loans on schedule also become eligible for higher loan amounts in subsequent cycles.

Digital transactions have been another key focus area. Vendors can earn cashback incentives of up to ?1,600 for adopting digital payments. More than 55 lakh vendors have collectively completed over 841 crore digital transactions worth nearly ?8.96 lakh crore under the scheme.

Beyond financial support, PM SVANidhi also promotes financial and digital literacy. In collaboration with the Food Safety and Standards Authority of India, the programme has trained around six lakh street food vendors in food safety and hygiene practices, helping improve service quality and consumer confidence.

The scheme's growing reach and extended tenure are expected to further strengthen financial inclusion and economic opportunities for millions of small vendors across India.

With inputs from IANS