PM SVANidhi Scheme: Street Vendors Credit & Impact Update
UPSC / SSC current affairs note · Economy
Why in news
The Ministry of Housing and Urban Affairs provided an update on PM SVANidhi scheme in Rajya Sabha on 27 July 2026, revealing that 76.95 lakh street vendors have availed loans worth ₹18,475.06 crore. The response also highlighted findings from ISB studies showing a 20% rise in annual business income and increased digital payment usage among beneficiaries.
Background
PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) was launched on 1 June 2020 to provide collateral-free working capital loans to street vendors affected by COVID-19. It offers three tranches of ₹15,000, ₹25,000, and ₹50,000 with repayment periods of 12, 18, and 36 months respectively.
Key facts
As of 12 July 2026, 76.95 lakh street vendors have availed 1.15 crore loans totaling ₹18,475.06 crore.
Loan tranches: ₹15,000 (12 months), ₹25,000 (18 months), ₹50,000 (36 months) – all collateral-free.
Second tranche availed by 29,71,195 vendors; third tranche by 8,49,471 vendors.
'Svanidhi se Samriddhi' component launched on 4 Jan 2021 to link beneficiaries with 8 central welfare schemes for social security.
50.63 lakh beneficiaries and 1.06 crore family members have been onboarded under 'Svanidhi se Samriddhi', with 1.56 crore approvals.
ISB Hyderabad study (2023) found 95% beneficiaries took their first bank loan through PM SVANidhi.
ISB study (2025) showed ~20% average increase in annual business income between 2023 and 2025.
About 30% repeat loan takers reported having other loans, indicating credit history creation.
Digital payment usage among street vendors increased significantly between 2023 and 2025.
The scheme improved living standards, food security, healthcare access, and children's education for vendor families.
Prelims pointers
- PM SVANidhi: launched 1 June 2020
- Ministry: Housing and Urban Affairs
- Loan amounts: ₹15,000, ₹25,000, ₹50,000
- Repayment: 12, 18, 36 months
- 'Svanidhi se Samriddhi' launched 4 Jan 2021
- ISB Hyderabad conducted impact studies in 2023 and 2025
- Portal: pmsvanidhi.mohua.gov.in
- As of 12 July 2026: 76.95 lakh vendors, 1.15 crore loans, ₹18,475.06 crore
Mains angles
- GS2: Government policies and interventions for vulnerable sections – street vendors as informal sector workers.
- GS3: Inclusive growth, financial inclusion, and role of micro-credit in poverty alleviation.
- GS3: Impact of digital payments on informal economy and formalization of street vending.
- GS2: Social security schemes and their convergence with PM SVANidhi under 'Svanidhi se Samriddhi'.