New Delhi, June 2: The PM SVANidhi scheme is playing a transformative role in bringing street vendors into the formal economy by providing them access to affordable credit, financial security, and digital empowerment, according to government data and implementation updates.
Launched to support urban street vendors affected by economic disruptions, the scheme offers collateral-free working capital loans, enabling small traders to restart or expand their businesses with greater stability and confidence.
Officials said the initiative has significantly improved financial inclusion by integrating vendors into the banking system, many of whom were previously outside formal credit networks. The scheme has also encouraged the adoption of digital payment systems, enhancing transparency and easing business transactions.
Beyond credit support, PM SVANidhi is helping vendors build stronger livelihoods by improving their access to government welfare schemes, insurance coverage, and skill development opportunities.
The programme is also contributing to urban economic resilience by strengthening the informal sector, which plays a crucial role in local supply chains and daily consumer services across cities.
Experts note that the scheme’s impact extends beyond financial assistance, as it is gradually enabling street vendors to transition from informal livelihoods to more structured and sustainable business models.
The government continues to expand outreach under the scheme to ensure wider coverage, with a focus on inclusive growth and empowerment of small entrepreneurs at the grassroots level.