New Delhi, May 31: According to an official statement, over 7.5 million street vendors have availed more than 11.2 million loans under the Prime Minister Street Vendors Atmanirbhar Nidhi (PM SVANidhi) scheme.
Loans exceeding ₹17,800 crores have been distributed to street vendors across the country. Additionally, beneficiaries have received approximately ₹800 crores in the form of interest subsidies and digital cashback incentives.
Nearly 46% of the scheme’s beneficiaries are women, while around 70% come from marginalized and vulnerable communities. The statement noted that the scheme has strengthened the integration of micro-enterprises and local supply chains with urban local bodies and street vendors.
Launched during the COVID-19 pandemic, the PM SVANidhi scheme aims to provide affordable working capital to street vendors whose businesses were severely impacted by the crisis.
This initiative is the country’s first micro-loan scheme specifically designed for street vendors. Given the limited access to formal credit systems for this large segment of the informal sector, the scheme aims to promote their businesses and enhance financial inclusion.
In light of the scheme’s achievements and positive impact, the government has approved its restructuring and expansion. The loan distribution period has now been extended until March 2030.
All individuals selling daily essentials, food items, or providing services through temporary structures on streets, sidewalks, or other public spaces are eligible for the scheme. This includes vendors selling vegetables, fruits, and prepared foods, as well as service providers like barbers, cobblers, and laundry services.
Under the scheme, street vendors can receive working capital loans of ₹15,000, ₹25,000, and ₹50,000 in a phased manner without any collateral.
The scheme also offers interest subsidies, loan guarantee assistance, and UPI-linked RuPay credit cards with a limit of up to ₹30,000 for eligible vendors.
PM SVANidhi encourages timely and prompt loan repayments. Beneficiaries receive an annual interest subsidy of 7%. Vendors who repay their loans on time become eligible for higher loan amounts in the next phase.
To promote digital transactions, the scheme provides cashback incentives of up to ₹1,600 and financial literacy support. So far, over 5.5 million vendors have conducted more than 841 million digital transactions worth approximately ₹8.96 lakh crores.
The scheme also offers training in financial literacy, digital literacy, and food safety standards in collaboration with the Food Safety and Standards Authority of India. To date, around 600,000 street food vendors have received training on food safety and hygiene standards.
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