PM SVANidhi: Six Years of the Street Vendor Credit Scheme
Why in the news
The scheme for urban street vendors completed six years of operation in June 2026. It started during the COVID-19 pandemic as a micro-credit programme.
Key facts
- Type: Central Sector Scheme giving micro-credit to urban street vendors and hawkers.
- Run by: the Ministry of Housing and Urban Affairs (MoHUA) together with the Department of Financial Services (DFS).
- Loans: three progressive tranches; the next one opens automatically after the earlier loan is repaid on time.
- Interest subsidy: 7% a year on timely or early repayment.
- Extended period: lending now runs up to March 2030.
| Feature | Detail |
|---|---|
| Tranche sizes | ₹15,000, then ₹25,000, then ₹50,000 |
| Digital push | Cashback on retail and wholesale digital transactions |
| Credit card | UPI-linked RuPay Credit Card, limit up to ₹30,000, after repaying the second tranche |
| Target | 1.15 crore vendors, of whom 50 lakh are new beneficiaries |
| Training | Financial literacy, digital literacy, food safety and hygiene (with FSSAI) |
Role of SIDBI
- Technical and implementation partner of the scheme.
- Manages the credit guarantee trust fund that backs bank loans and cushions defaults.
- Coordinates the technology platform for applications, loan tracking and digital onboarding.
SVANidhi se Samriddhi
This add-on links vendors to eight welfare schemes, turning a credit scheme into a wider social security net.
| Linked scheme | What it gives |
|---|---|
| PMJJBY | Life cover of ₹2 lakh, ages 18-50, premium ₹436 a year |
| PMSBY | Accident cover of ₹2 lakh, ages 18-70, premium ₹20 a year |
| PMJDY | Zero-balance account, RuPay debit card, accident and life cover |
| BoCW registration | Welfare board benefits for construction workers |
| PM Shram Yogi Maandhan Yojana | Voluntary pension for unorganised workers, ₹3,000 a month after 60 |
| ONORC | Ration entitlement usable anywhere in India |
| Janani Suraksha Yojana | Cash incentive for institutional deliveries |
| PMMVY | Maternity benefit of ₹5,000 for the first child |
Performance after six years
- More than 75.5 lakh unique vendors have used the scheme.
- Disbursement is above ₹17,800 crore.
- About 46% of beneficiaries are women and about 70% come from marginalised communities.
Exam angle
- Launch: June 2020; nodal bodies: MoHUA and DFS.
- Collateral-free working capital in three tranches; 7% interest subsidy.
- Related law: Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
- Implementation partner: SIDBI.