The PM SVANidhi Scheme, launched in 2020 by Prime Minister Narendra Modi, has become a pivotal program supporting street vendors across India by offering collateral-free working capital loans and promoting their integration into the formal economy. This initiative aims to provide street vendors not only with financial aid but also with dignity, confidence, and opportunities for sustainable livelihoods.
According to the Union Minister for Housing and Urban Affairs, more than 75.5 lakh street vendors have benefited from the program over six years. The scheme has sanctioned over 1.12 crore loans, distributing nearly Rs 17,800 crore in financial assistance. These funds have helped many vendors transition from informal setups to formal banking systems, thereby enhancing their financial inclusion and self-reliance.
The program specifically targets urban vendors who require affordable capital to resume and expand their small businesses, which faced hardship during the Covid-19 pandemic. In the North-Eastern region alone, the scheme disbursed over Rs 430 crore through more than 2.59 lakh loans. Tripura, for example, has seen over 9,300 loans sanctioned, totaling nearly Rs 15 crore in support.
This access to formal finance marks a significant shift for countless vendors previously excluded from banking services. By connecting them with institutions for the first time, PM SVANidhi fosters economic empowerment and social recognition, reinforcing the government's commitment to uplifting the urban poor.