A recent State Bank of India research paper delves into the remarkable influence of the PM SVANidhi Scheme, titled “PM SVANidhi: Strengthening the Country’s Social Fabric by Empowering Grassroot Market Mavericks.”

This initiative, launched by Prime Minister Narendra Modi’s government in 2020, offers collateral-free loans of up to Rs 50,000 to urban street vendors, empowering marginalised micro-entrepreneurs.

As reported by Moneycontrol, the report highlights how the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) seamlessly integrates these entrepreneurs while bridging communal divides.

Notably, nearly 75 per cent of loan beneficiaries originate from non-general categories, underlining the transformative potential of well-conceived policy schemes.

Other statistics reveal that OBCs account for 44 per cent of total disbursements, while SCs/STs represent 22 per cent.

Furthermore, 43 per cent of the beneficiaries are women, emphasising the scheme’s role as a gender equaliser.

The report also uncovers encouraging repayment trends: 68 per cent of borrowers repaying the first loan of Rs 10,000 proceed to take a second loan of Rs 20,000, while 75 per per cent of those repaying the second loan of Rs 20,000 move on to acquire the third loan of Rs 50,000.

In terms of financial behavior, PM SVANidhi account holders exhibit a 50 per cent increase in average debit card spending, reaching Rs 80,000 in FY23 compared to FY21.

The scheme has also fostered greater acceptance of digital transactions.

Notably, when PM SVANidhi loans were extended to Jan Dhan beneficiaries, at least 9.5 per cent of those previously conducting fewer than 10 transactions, transitioned to increased digital usage.

The majority of PM SVANidhi borrowers, approximately 65 per cent, fall within the age group of 26 to 45.

Till date, PM SVANidhi has disbursed around 70 lakh loans across three tranches, benefitting over 53 lakh street vendors and reaching a total value exceeding Rs 9,100 crore.

This remarkable impact underscores the pivotal role the scheme plays in fostering entrepreneurial growth among India’s urban street vendors.