PM SVANidhi: Loans for Street Vendors

How the PM SVANidhi scheme gave small working capital loans to street vendors after the pandemic, how it links to digital payments, and what it achieved.

Street vendors were hit hard by COVID-19 lockdowns. In June 2020, the government launched PM SVANidhi.

How it works

Collateral-free loans for street vendors.
Initially 10,000 rupees, with larger loans of 20,000 and 50,000 for those who repay.
Interest subsidy of 7 percent for timely repayment.
Cashback for digital transactions.

Scale

Lakhs of vendors received loans, with the scheme reaching tens of lakhs of beneficiaries. The scheme was extended and restructured in 2025, with higher loan amounts.

Digital push

Vendors were encouraged to accept UPI payments, building a digital transaction history that helps them get more credit.

Benefits

Working capital to restart businesses.
Formal credit instead of moneylenders.
Identity through vending certificates.

Challenges

Some vendors lacked documents.
Repayment varied.
Loans are small relative to needs.

The chaat vendor

A chaat vendor in Lucknow gets a 10,000-rupee SVANidhi loan to restock after the lockdown. She repays on time, gets a larger loan and starts accepting UPI.

Thinking street vendors can't access formal credit

PM SVANidhi gave collateral-free loans to lakhs of vendors.

Key takeaways

PM SVANidhi launched in June 2020 for street vendors.
It offers collateral-free loans starting at 10,000 rupees.
Digital payments earn cashback and build credit history.
The scheme was extended and restructured in 2025.