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GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 3318
TO BE ANSWERED ON MARCH 12, 2026
POLICY REVIEW FOR PM SVANIDHI SCHEME
NO. 3318. SHRI BAIJAYANT PANDA:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to
state:
(a) whether any policy review has been undertaken to assess the
impact of PM SVANidhi scheme beyond credit access and if so, the
details thereof;
(b) whether the scope for additional non-credit support has been
examined and if so, the details thereof; and
(c) whether any next-phase policy enhancements are under
consideration and if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE
MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) & (b): Yes. Impact assessment studies of the PM SVANidhi scheme
had been undertaken by Indian School of Business (ISB), Hyderabad in
2023 & 2025. The 2023 study found that PM SVANidhi was the first loan
from a bank for 95% of the beneficiaries and the loan was utilized for
expanding their business. The 2025 study found that the average
annualized business income among SVANidhi borrowers grew by around
20 percent, between 2023 and 2025. Around 30 percent of borrowers
across all cycles reported holding loans other than PM SVANidhi loans
which underscores the scheme’s role in building credit histories for
vendors who previously had little or no access to formal credit. Further
the study also found the scheme’s impact extends well beyond business
recovery. By easing credit constraints and stabilizing household cash
flows, the scheme has enabled vendor families to improve living
conditions, strengthen food security, enhance access to health-care, and
support children’s education.
…2/--2-
(c): The Government in August, 2025 has approved the restructured PM
SVANidhi Scheme, extending the lending period under the scheme up to
31st March 2030. In the restructured scheme the loan amounts for first
tranche and second tranche have been enhanced to, up to Rs 15,000 and
up to Rs 25,000, respectively. The restructured scheme now provides for
cashback on wholesale purchases in addition to cashback on retail
digital transactions. Coverage of the scheme has been expanded beyond
statutory towns to include census towns, peri-urban areas, etc. in a
graded manner. Additionally, UPI-linked RuPay Credit Card has been
introduced for beneficiaries who have repaid the second loan tranche.
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