PM-SVANidhi Scheme Implementation and Impact Assessment
UPSC / SSC current affairs note
Why in news
The Press Information Bureau released details on the implementation of PM-SVANidhi scheme, including its expansion to census towns and peri-urban areas. The Indian School of Business (ISB) conducted studies in 2023 and 2025 assessing the scheme's impact, showing positive outcomes in business profits, credit access, and digital payments adoption among street vendors.
Background
PM-SVANidhi (Prime Minister Street Vendor's AtmaNirbhar Nidhi) scheme was launched to provide collateral-free working capital loans to street vendors affected by COVID-19. Initially implemented in urban areas, it was later extended to vendors in peri-urban areas within the geographical limits of urban local bodies. The scheme is now being expanded to census towns and peri-urban areas in a phased manner.
Key facts
PM-SVANidhi scheme was initially implemented in urban areas and later extended to peri-urban vendors within urban local body limits.
The scheme's scope is being expanded to census towns and peri-urban areas in a phased manner under the revamped PM-SVANidhi scheme.
ISB Hyderabad conducted studies in 2023 and 2025 to assess the scheme's impact; the 2023 study covered over 5,000 beneficiaries across 100 ULBs.
95% of beneficiaries in the 2023 study reported that the PM-SVANidhi loan was their first bank loan, used to expand their business.
The 2025 study (over 5,000 beneficiaries in 99 ULBs, ~60% from the 2023 sample) found an average annual business profit increase of about 20% between 2023 and 2025.
About 30% of borrowers across all loan cycles reported having other loans besides PM-SVANidhi, indicating the scheme helps build credit history.
Digital payment adoption among street vendors increased significantly between 2023 and 2025.
The scheme improved family living standards, food security, healthcare access, and children's education.
Street vendors are identified through surveys under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
A UPI-linked RuPay credit card was launched on 23 January 2026 for beneficiaries who have repaid the second loan installment.
Prelims pointers
- PM-SVANidhi scheme
- Ministry of Housing and Urban Affairs
- Indian School of Business (ISB), Hyderabad
- Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014
- UPI-linked RuPay credit card
- Urban Local Bodies (ULBs)
- Census towns
- Peri-urban areas
- 23 January 2026 (UPI-linked RuPay credit card launch)
- Loan approval average time: 23 days
Mains angles
- Discuss the role of PM-SVANidhi in financial inclusion and formal credit access for informal sector workers.
- Critically examine the impact of PM-SVANidhi on street vendors' livelihoods and urban poverty alleviation.
- Evaluate the effectiveness of government schemes in promoting digital payments among informal sector workers.
- Analyze the challenges in identifying and covering street vendors under social welfare schemes.