Improvement in PM SVANidhi Scheme: Key Figures and New Features

The PM SVANidhi scheme now offers working capital term loans in three tranches, adds UPI linked RuPay credit cards for eligible vendors and extends benefits to additional urban areas up to March 2030. 

Scheme Structure and Loan Disbursement 

Since June 2020 to January 20, 2026, 71,57,000 vendors have taken the first tranche, 27,28,000 have taken the second tranche and 6,61,000 have taken the third tranche. 

Repayment of each tranche unlocks the next, reducing the risk of over‑indebtedness and encouraging timely repayment. 

Impact on Vendor Income and Credit Access 

Impact assessments by the Indian School of Business in 2023 and 2025 show that average annualised business income grew by around 20 % between 2023 and 2025.  

Approximately 30 % of borrowers across all cycles now hold formal loans, indicating improved credit histories for vendors previously excluded from formal finance. 

Read More: Government Eyes Merging PM-RKVY And Krishonnati Yojana into Single Agriculture Scheme! 

Introduction of UPI Linked RuPay Credit Cards 

Vendors who have fully repaid the second tranche can apply for a UPI linked RuPay credit card. As on February 2, 2026, 15,184 applications were received and 2,479 cards have been issued, providing immediate liquidity for business needs. 

Outreach Activities and Extension of Benefits 

The scheme’s lending period has been extended to March 2030 and now covers census towns, urban agglomerations and peri‑urban areas. State and urban local bodies identify eligible vendors and run awareness campaigns via radio jingles, television and newspapers.  

IEC materials in local languages are supplied regularly. Post‑approval events such as Lok Kalyan Melas (17 September to 15 October, 2025) and the SVANidhi Sankalp Abhiyan (3 November to 2 December, 2025) supported vendor mobilisation, faster loan disbursement and digital onboarding.  

Digital literacy camps run with payment aggregators and cashback incentives encourage cashless transactions. 

Conclusion 

The restructured PM SVANidhi scheme has expanded loan coverage, introduced credit cards, and intensified outreach, resulting in higher vendor incomes and greater access to formal credit while extending benefits to a broader set of urban areas. 

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