PM SVANidhi, the central scheme for urban street vendors, has been restructured to deepen credit access, improve digital adoption, and expand coverage. The scheme provides working capital term loans in three tranches, with each stage linked to successful repayment of the previous loan. This design aims to reduce over-indebtedness and build repayment discipline among beneficiaries.
Loan Structure and Credit Support
The scheme offers staggered lending to eligible street vendors. A vendor becomes eligible for the second tranche after repaying the first, and for the third tranche after repaying the second. UPI-linked RuPay Credit Cards have also been introduced for vendors who have successfully repaid the second tranche. These cards are meant to support immediate business and personal financial needs.
Coverage and Beneficiary Data
Since the launch of the scheme in June 2020 till 20 January 2026:
- 71.57 lakh beneficiaries availed the first tranche loan.
- 27.28 lakh beneficiaries availed the second tranche loan.
- 6.61 lakh beneficiaries availed the third tranche loan.
As on 2 February 2026, 15,184 applications for UPI-linked RuPay credit cards were received and 2,479 cards were issued across the country.
Impact on Income and Formal Credit
An impact assessment by the Indian School of Business in 2023 and 2025 found that average annualised business income among borrowers grew by around 20 per cent between 2023 and 2025. Around 30 per cent of borrowers across all cycles reported holding formal loans, indicating improved access to institutional credit and stronger credit histories for street vendors.
Extension, Outreach and Implementation
The restructured scheme has been extended up to March 2030. Its benefits are being expanded in a graded manner to census towns, urban agglomerations, and peri-urban areas. State governments and Urban Local Bodies identify eligible vendors and mobilise applications. The Ministry has also used radio jingles, television and newspaper campaigns, local-language IEC material, Lok Kalyan Melas, and the SVANidhi Sankalp Abhiyan to improve outreach, digital onboarding, and faster loan disbursal.
Last Modified: April 28, 2026