Parliament Parliament Q&A
PM SVANidhi Scheme: 95% of beneficiaries received first bank loan
The question asked the Ministry of Housing and Urban Affairs to detail the assistance, incentives, financial inclusion measures, impact assessments (specifically in Tripura), and outreach initiatives under the PM SVANidhi Scheme.
Asked and answered by: Asked by Shri Biplab Kumar Deb; Answered by the Minister of Housing and Urban Affairs (Shri Manohar Lal).
What the government said
- PM SVANidhi Scheme launched on 1st June 2020; restructured scheme approved by Union Cabinet in August 2025.
- Collateral-free working capital loans provided in three tranches: up to ₹15,000 (12-month repayment), ₹25,000 (18-month repayment), and ₹50,000 (36-month repayment).
- As of 12th July 2026, 76.95 lakh street vendors availed 1.15 crore loans totaling ₹18,475.06 crore.
- 7% interest subsidy provided for regular repayment.
- UPI-linked RuPay Credit Cards introduced for beneficiaries who repaid the second tranche.
- Digital incentives include cashback of up to ₹100/month for 12 months (max ₹1,200) per loan tranche and up to ₹100/quarter for 4 quarters (max ₹400) for wholesale digital purchases of at least ₹2,000.
- 'SVANidhi se Samriddhi' component links beneficiaries to eight Central Government welfare schemes; 50.63 lakh beneficiaries profiled with 1.56 crore sanctions extended as of 12th July 2026.
- In Tripura, 6,202 street vendors availed 9,517 loans totaling ₹15.88 crore since inception.
- Impact studies by Indian School of Business (ISB) in 2023 and 2025 found that 95% of beneficiaries received their first bank loan through the scheme and average annualized business income grew by around 20% between 2023 and 2025.
- Scheme coverage expanded beyond statutory urban areas to include census towns and peri-urban areas under the restructured scheme.
- Outreach initiatives include Lok Kalyan Melas, digital literacy camps, and IEC materials in local languages.
Also in the document
- The answer states that the 2023 ISB study found PM SVANidhi was the first bank loan for 95% of beneficiaries.
- The answer notes that the 2025 ISB study reported a 20% growth in average annualized business income for borrowers between 2023 and 2025.
- The answer specifies that credit guarantee cover is provided to lending institutions to mitigate credit risk.
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The original document
Parliament of India — Questions & Answers (Lok Sabha, starred)
Question to govt · Ref. LS Q276 (Session 8) · 6 Aug 2026
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