**Executive Summary**
The document details improvements under the PM SVANidhi scheme, which provides working capital term loans to urban street vendors. The scheme has been extended to March 2030 and expanded to include census towns and peri-urban areas. Lok Kalyan Melas and the 'SVANidhi Sankalp Abhiyan' were conducted in 2025 to promote the scheme and clear pendency.
**Key Points / Main Content**
* **Loan Structure and Repayment:**
* The scheme provides loans in three tranches; vendors can avail of the second and third tranches upon successful repayment of the previous loans.
* UPI-linked RuPay Credit Cards have been introduced for vendors who have repaid the second tranche loan.
* **Scheme Performance and Impact:**
* As of January 20, 2026, 71.57 lakh, 27.28 lakh, and 6.61 lakh street vendors have availed of the first, second, and third tranche loans respectively.
* The average annualized business income of SVANidhi borrowers grew by around 20% between 2023 and 2025, according to an ISB study.
* Approximately 30% of borrowers now hold formal loans, indicating improved credit histories.
* As of February 2, 2026, 15,184 applications for RuPay credit cards linked to UPI have been received and 2,479 credit cards have been issued.
* **Scheme Extension and Expansion:**
* The lending period has been extended to March 2030.
* Scheme benefits have been extended to census towns, urban agglomerations, and peri-urban areas.
* **Ministry Initiatives:**
* The Ministry undertakes awareness campaigns, provides Information, Education, and Communication (IEC) materials, and conducts regular reviews with States/UTs/ULBs to enhance coverage.
* Lok Kalyan Melas were organized in ULBs from September 17, 2025, to October 15, 2025, to promote the scheme.
* 'SVANidhi Sankalp Abhiyan' was conducted from November 3, 2025, to December 2, 2025, to clear pendency at the bank and ULB levels.
* Cashback incentives are provided to beneficiaries to promote digital onboarding and cashless payments.
**Impact Analysis**
**State/ULBs**
* **Impact:** Responsible for identifying eligible street vendors and mobilizing new applications.
* **Action Required:** Conduct digital literacy camps in collaboration with DPAs.
**Street Vendors**
* **Impact:** Benefit from working capital term loans, UPI-linked RuPay Credit Cards, and cashback incentives for digital payments.
* **Action Required:** Apply for loans and digital onboarding.
**Banks**
* **Impact:** Involved in loan disbursement and processing RuPay credit card applications.
* **Action Required:** Clear pendency at the bank levels.
**Digital Payment Aggregators (DPAs)**
* **Impact:** Key partners in promoting digital payments and financial inclusion.
* **Action Required:** Collaborate with ULBs to conduct digital literacy camps and facilitate digital onboarding.
Key Entities Referenced
PM SVANidhi scheme: A scheme providing working capital term loans to urban street vendors.
Ministry of Housing & Urban Affairs: The ministry responsible for the PM SVANidhi scheme and its implementation.
ULBs: Urban Local Bodies, responsible for identification of street vendors and mobilisation of new applications.
Ministry of Housing & Urban Affairs
IMPROVEMENT UNDER PM SVANIDHI SCHEME
Posted On: 09 FEB 2026 6:39PM by PIB Delhi
PM SVANidhi scheme provides working capital term loans to urban street vendors in three tranches. Upon
successful repayment of first and second tranches, the street vendor becomes eligible to avail second and
third tranche loans respectively. This staggered lending structure prevents over-indebtedness and
encourages sustainable repayment behaviour. In addition, UPI-linked RuPay Credit Cards have been
introduced in the restructured PM SVANidhi scheme for street vendors who have successfully repaid the
second tranche loan enabling them to meet immediate financial and business needs. Since the inception of
the scheme in June, 2020 till 20 January, 2026, 71.57 lakh, 27.28 lakh and 6.61 lakh street vendor
beneficiaries have availed the first tranche, second and third tranche loans respectively.
As per the findings of the scheme impact assessment study conducted by the Indian School of Business
(ISB) in 2023 and 2025, average annualized business income among SVANidhi borrowers grew by around
20 percent, between 2023 and 2025. Further, around 30 percent of borrowers across all cycles reported
holding formal loans which underscores the scheme’s role in building credit histories for vendors who
previously had little or no access to formal credit.
As on 02.02.2026, 15,184 applications for RuPay credit cards linked to UPI have been received across the
country and 2,479 credit cards have been issued to street vendors.
Under the restructured PM SVANidhi scheme, the lending period under the scheme has been extended up
to March 2030, and the scheme benefits have been extended to census towns, urban agglomerations, peri-
urban areas, etc. in a graded manner, thereby creating increased livelihood opportunities.
State/ULBs are responsible for identification of eligible street vendors and mobilisation of new
applications under the scheme. To enhance coverage and ensure wider inclusion of street vendor
beneficiaries, the Ministry has undertaken several initiatives, including periodic awareness campaigns
through radio jingles, television and newspaper advertisements. States and Union Territories are also
regularly provided with Information, Education and Communication (IEC) materials in local languages to
facilitate outreach and dissemination of scheme benefits among street vendors. Regular reviews are also
conducted with States/UTs/ULBs.
Under the scheme, MoHUA has organized various campaigns and events to enhance outreach to street
vendors. After the approval of the restructured PM SVANidhi scheme on 27th August 2025, Lok Kalyan
Melas were organized in ULBs from 17th September 2025 to 15th October 2025. These Melas promoted
the new features of the schemes and supported vendor mobilisation, loan application submission, faster
loan disbursement, and digital onboarding of beneficiaries. Additionally, the ‘SVANidhi Sankalp Abhiyan’
was conducted from 3rd November, 2025 to 2nd December, 2025 across all States and Union Territories in
a mission mode to clear pendency at both the bank and ULB levels.
ULBs, in collaboration with Digital Payment Aggregators (DPAs), also conduct regular digital literacy
camps. To enhance digital onboarding and promote the adoption of cashless payments among street
vendors, beneficiaries are provided cashback incentives.This information was given by the Minister of State for Housing & Urban Affairs, Shri Tokhan Sahu in a
written reply in the Rajya Sabha today.
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