PM SVANidhi Scheme Empowers Urban Street Vendors with New Financial Tools
The PM SVANidhi scheme, launched by the government to support urban street vendors, is making significant strides in helping them access working capital. This initiative provides loans in three structured tranches, encouraging sustainable repayment habits while preventing vendors from falling into over-indebtedness. Additionally, UPI-linked RuPay Credit Cards have been introduced for vendors who successfully repay their second tranche loans, enabling them to handle immediate financial needs more effectively.
Since its inception in June 2020, the scheme has benefitted millions of street vendors. As of January 20, 2026, approximately 71.57 lakh vendors have received the first tranche of loans, with 27.28 lakh and 6.61 lakh accessing the second and third tranches, respectively. This gradual lending approach has proven to be effective in promoting economic stability among street vendors.
Impact of the Scheme
A recent impact assessment study conducted by the Indian School of Business (ISB) between 2023 and 2025 reveals that the average annual business income for SVANidhi borrowers increased by nearly 20%. Furthermore, about 30% of borrowers across all cycles now hold formal loans, highlighting the scheme’s effectiveness in building credit histories for vendors who previously lacked access to formal financial services.
Expanding Access to Credit
As of February 2, 2026, a total of 15,184 applications for RuPay credit cards linked to UPI have been submitted nationwide, resulting in the issuance of 2,479 cards to street vendors. The restructured PM SVANidhi scheme has extended its benefits through March 2030, allowing more vendors, including those in census towns and urban agglomerations, to partake in the offered financial support.
Awareness and Outreach Initiatives
To improve outreach and inclusion, state and urban local bodies (ULBs) are tasked with identifying eligible vendors and mobilizing applications. The Ministry of Housing and Urban Affairs (MoHUA) has launched various initiatives, including awareness campaigns utilizing radio jingles, television ads, and newspapers. Additionally, local language materials are provided to facilitate vendor understanding of the scheme.
The MoHUA also coordinates campaigns aimed at enhancing outreach. Following the approval of the restructured PM SVANidhi scheme on August 27, 2025, several Lok Kalyan Melas were held from September 17 to October 15, 2025. These events promoted the scheme’s new features and supported vendors in loan applications and digital onboarding.
Encouraging Digital Literacy
Moreover, ULBs, in collaboration with Digital Payment Aggregators (DPAs), organize regular digital literacy camps to promote cashless transactions among street vendors. To incentivize digital adoption, beneficiaries receive cashback rewards. This blend of financial support and educational initiatives aims to empower street vendors, enhance their long-term livelihoods, and stimulate economic growth within urban areas.
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