Business EconomyPosted at: Jun 7 2026 1:59PM


PM SVANidhi transitioned into institutional platform for financial inclusion: PNB Chief

New Delhi, Jun 7 (UNI) The PM SVANidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) scheme has successfully transitioned into an extended institutional platform for financial inclusion in India, said Ashok Chandra, MD & CEO, Punjab National Bank.
"The primary utility of PM SVANidhi lies in its brilliant dismantling of the barriers to formal credit for informal micro-entrepreneurs. Historically, street vendors were trapped in vicious cycles of high-interest debt from informal moneylenders. PM SVANidhi shattered this paradigm by providing collateral-free working capital loans. Operated as a progressive lending ladder, it incentivizes fiscal discipline," Chandra said.
"Initially, when the scheme was launched, vendors began with a first tranche of up to Rs 10,000, and upon timely repayment, seamlessly graduate to a second tranche of up to ₹20,000, and a third of up to Rs 50,000. Backed by a 7per cent per annum interest subvention credited quarterly to the borrowers’ accounts, the scheme makes formal credit incredibly affordable," he added.
As the scheme marked its sixth anniversary on 1st June, 2026, its massive scale, recent structural upgrades, and holistic socio-economic impact offer a definitive blueprint for empowering the bottom of the pyramid, the PNB chief said.
He mentioned that the overwhelming success of the program is vividly reflected in its metrics. Demonstrating the massive scale of India's financial inclusion drive, 75.69 lakh micro-entrepreneurs have been successfully tapped into PM SVANidhi loans as of 29th May 2026, out of which 72.4 per cent are digitally active entrepreneurs.
"This massive outreach has systematically democratized banking, driving financial literacy among populations that were previously unbanked. By bringing millions into the formal banking fold, the scheme has enabled street vendors to build official credit scores for the very first time, opening doors to broader institutional financial products in the future," Chandra said.
Beyond mere cash flow, PM SVANidhi has served as a powerful engine for digital transformation and social equity. To drive India's digital economy, the scheme offers up to Rs 1,600 in annual cashbacks to vendors who integrate UPI and digital payment mechanisms into their daily transactions.
This has successfully turned millions of roadside stalls into digitally savvy micro-businesses. Furthermore, its demographic data highlights its role in uplifting vulnerable populations: approximately 69 per cent of the beneficiaries belong to marginalized communities, including OBCs/SC/ST categories, alongside a massive, empowering representation of women entrepreneurs, which accounted for around 45 per cent as per official data available.
The Government of India recently restructured and extended the scheme until March 31, 2030, scaling up its total financial outlay to Rs 7,332 crore with an ambitious new target of reaching 1.15 crore beneficiaries.
As part of the revamped framework, the loan amount has been raised to Rs 15,000 for the first tranche and Rs 25,000 for the second tranche, while the third tranche remains at Rs 50,000. Further, beneficiaries who successfully clear their second-tranche loan are eligible for a UPI-linked RuPay Credit Card with an initial limit of Rs 10,000 which can be scaled up to Rs 30,000.
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