PM SVANidhi Scheme Expands: Check New Rules for Beneficiaries

The Prime Minister Street Vendor's AtmaNirbhar Nidhi Scheme (PM SVANidhi) is a flagship scheme of the Government of India, launched on 1st June 2020. Steered to support street vendors affected by the COVID-19 pandemic, this micro-facility supports the financial inclusion of vendors in the form of collateral-free working capital loans, which enables vendors to resume, sustain, and expand their businesses.

Objectives and Implementation

The scheme is implemented jointly by the Department of Financial Services (DFS) and the Ministry of Housing and Urban Affairs (MoHUA). The scheme aims to bring street vendors into the mainstream credit system by making it convenient for them to avail themselves of credit facilities from financial institutions and banks. 

PM SVANidhi enhances the capabilities of vendors by providing them with accessible loans at reduced interest rates, thereby fostering entrepreneurship and encouraging digital transactions.

Framework of Financing and Benefits

For the first time, the scheme introduced a collateral-free loan of Rs 10,000, which is to be repaid in monthly installments over the course of one year. In the event of prompt repayment, the beneficiaries are also entitled to a second tranche loan of Rs 20,000 and a third tranche loan of Rs 50,000. 

The Union Cabinet recently approved restructuring the scheme to increase the first tranche loan to Rs 15,000 and the second tranche to Rs 25,000, with the third tranche staying at Rs 50,000.

For encouraging digital payment, the scheme offers cashback rewards of up to Rs 1,600 for wholesale and retail transactions. Additionally, beneficiaries who repay the second loan are eligible for a UPI-linked RuPay Credit Card, which provides instant access to credit for unforeseen business or personal needs.

Expansion and Impact

The cover of the scheme has been increased to include census towns and peri-urban areas in addition to statutory towns, increasing its reach to street vendors located across various geographies. As on July 2025, over 96 lakh loans worth Rs 13,797 crore were sanctioned, covering over 68 lakh street vendors.

PM SVANidhi has also served as a gender balancer with 43% of its beneficiaries being female. The scheme has assisted marginalized groups since it has disbursed close to 75% of the loans to non-general category beneficiaries like OBCs, SCs, and STs. Its success in financial inclusion and digital literacy saw the scheme win the Prime Minister's Award for Excellence in Public Administration (2023).

Social Security and Capacity Building

The ‘SVANidhi se Samriddhi’ component connects beneficiaries with a range of government welfare schemes, including the Pradhan Mantri Jeevan Jyoti Bima Yojana and the PM Suraksha Bima Yojana. 

The initiative emphasizes enhancing the capabilities of vendors in areas such as entrepreneurship, digital skills, and food safety, in collaboration with pertinent authorities.

To further solidify the scheme, processes like monthly Lok Kalyan Melas are conducted to enable vendors to take advantage of numerous government schemes.