Higher Credit Access and Digital Enablement
The government has rolled out a major upgrade to the PM SVANidhi scheme, which has already supported over 68 lakh street vendors with formal credit access. The revamped framework introduces UPI-linked credit cards with limits up to ₹30,000, enabling vendors to manage daily transactions and working capital without relying on informal lenders.
In addition, eligible vendors can now access bank loans of up to ₹50,000, coupled with structured capacity-building programmes covering digital payments, inventory management, and customer outreach. Integration with ONDC is expected to improve market access and sales visibility for urban street businesses.
Stronger Support Ecosystem and Risk Management
To enhance social security, the scheme links beneficiaries with insurance coverage under PMJJBY, along with targeted skill training delivered through 5,000 urban livelihood centres nationwide.
Digital dashboards will track repayments in real time, improving transparency and credit discipline. Vendors maintaining regular repayment cycles of 90 days will be eligible for a 2% interest subvention, a measure aimed at keeping default rates below 5%. The expanded scheme targets 1 crore additional beneficiaries, with a focus on Tier-2 and Tier-3 cities.
Formalisation and Urban Income Growth
The revamped PM SVANidhi is positioned as a key driver of formalisation in the informal urban economy. Digitised licensing and payment trails are expected to increase municipal revenues by up to 20%, while participating vendors could see income growth of 30–40% through better credit access and market integration.
Policymakers view the scheme as a critical tool for urban poverty reduction and inclusive growth, aligning with the broader vision of Sabka Vikas by enabling street vendors to transition sustainably into the formal economy.
