The PM SVANidhi Yojana, introduced by the Government of India in June 2020, is a micro-credit scheme designed to uplift street vendors by providing them with access to affordable working capital loans. The scheme was launched in response to the severe economic disruptions caused by the COVID-19 pandemic, which left many small vendors struggling to sustain their businesses. By offering an initial collateral-free loan of up to ₹10,000, followed by subsequent loans upon timely repayment, the scheme aims to ensure financial stability and business continuity for street vendors. Additionally, it encourages digital transactions and provides incentives for timely loan repayments, thus fostering financial discipline and digital inclusion among beneficiaries.

Street vendors play a crucial role in India’s urban economy by offering affordable goods and services, yet they often face financial constraints due to limited access to formal credit systems. Before the introduction of PM SVANidhi, these vendors largely depended on informal credit sources, which came with high-interest rates and unfavorable repayment terms. The scheme addresses this gap by integrating vendors into the formal banking system, thus reducing their dependency on moneylenders and enhancing their financial security. Furthermore, the initiative aligns with the government’s broader vision of financial inclusion, aiming to empower micro-entrepreneurs and boost the informal sector’s contribution to the economy.

Indore, one of India’s fastest-growing cities, has a large population of street vendors who contribute significantly to the local economy. Known for its thriving marketplaces, street food culture, and small trading businesses, the city provides a relevant case for studying the socio-economic impact of PM SVANidhi. The scheme’s implementation in Indore has witnessed considerable participation from vendors, raising important questions regarding its effectiveness in improving their livelihoods. This study seeks to empirically analyze the impact of the PM SVANidhi Yojana on street vendors in Indore by evaluating key socio-economic parameters such as income enhancement, business sustainability, savings patterns, and the adoption of digital payment methods.

The research aims to assess the extent to which the scheme has succeeded in fulfilling its objectives and addressing the challenges faced by vendors in accessing formal financial services. It will examine whether the scheme has led to increased financial stability, better business prospects, and improved quality of life for beneficiaries. Additionally, the study will explore challenges such as procedural difficulties, delays in loan disbursement, and the level of awareness among vendors regarding the scheme’s benefits.

By providing an in-depth analysis of the experiences of street vendors in Indore, this research will offer valuable insights into the strengths and limitations of the PM SVANidhi Yojana. The findings will contribute to policy discussions on improving financial inclusion for the urban informal sector and optimizing the implementation of similar government initiatives. The study will also shed light on the long-term socio-economic impact of the scheme, helping policymakers, financial institutions, and stakeholders develop strategies to further support and empower street vendors in India.

Rationale behind the study:

The rationale behind this study lies in the need to assess the effectiveness of the PM SVANidhi Yojana in improving the socio-economic conditions of street vendors, who form a vital part of India’s urban informal economy. Despite their significant contribution, street vendors often face financial instability, lack of access to formal credit, and vulnerability to economic shocks, particularly in the aftermath of the COVID-19 pandemic. While the scheme aims to address these challenges by providing working capital loans and promoting digital financial inclusion, its actual impact on beneficiaries in different regions remains an area of inquiry. Indore, known for its dynamic street vendor ecosystem, serves as a relevant case study to evaluate whether the scheme has led to meaningful improvements in income levels, business stability, financial independence, and overall quality of life. By empirically analyzing the outcomes of PM SVANidhi among its beneficiaries, this study seeks to bridge the knowledge gap on the scheme’s real-world impact, identify implementation challenges, and provide data-driven insights for policymakers to enhance the reach and efficiency of such financial inclusion programs.

Objectives:

Following are the objectives of the study:

• To assess the impact of PM SVANidhi Yojana on the income levels, business sustainability, and financial stability of street vendors in Indore.
• To analyze the challenges faced by street vendors in accessing and utilizing the benefits of the scheme, including loan disbursement, repayment, and awareness levels.

Hypothesis:

The research aims to test the hypothesis that “There is no significant impact of PM SVANidhi Yojna on the socio-economic status of Street Vendors in Indore”

The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme, launched by the Government of India in June 2020, aims to empower street vendors by providing collateral-free working capital loans to mitigate the economic impact of the COVID-19 pandemic. The scheme facilitates loans of up to ₹10,000 for a one-year tenure, targeting approximately 50 lakh street vendors to help resume their businesses in urban and surrounding areas (Government of India)

A study by Kaur and Kaur (2017) highlighted that a significant challenge faced by street vendors in India is the lack of access to formal institutional credit, leading to financial instability and limited business growth. The PM SVANidhi scheme addresses this issue by integrating vendors into the formal financial system, thereby reducing their dependence on informal credit sources.

As of August 3, 2023, the scheme has disbursed approximately 51.55 lakh loans, reflecting its extensive reach among the targeted beneficiaries (IMPRI, 2024). The government has extended the scheme beyond March 2022, introducing a third loan of up to ₹50,000 and extending the lending period until December 2024, indicating a commitment to the scheme's continuation and expansion (PIB, 2023)

The scheme also emphasizes the promotion of digital transactions among vendors by offering cashback incentives, aiming to enhance financial inclusion and digital literacy (SBI Research, 2023). This aspect is crucial as digital financial adoption can lead to more transparent and efficient business operations for street vendors.

The PM SVANidhi scheme has reportedly resulted in a monthly income increase of approximately ₹2,000 for street vendors, indicating a positive economic impact (Government of India). However, challenges such as procedural difficulties, delays in loan disbursement, and varying levels of awareness among vendors about the scheme's benefits have been identified. Addressing these challenges is essential for the scheme's effectiveness in improving the socio-economic conditions of street vendors.

In summary, the PM SVANidhi scheme represents a significant policy intervention aimed at empowering street vendors through financial inclusion and support. While the scheme has achieved substantial outreach and has positively impacted vendors' incomes, ongoing efforts to address implementation challenges are crucial to fully realizing its objectives.

2.2 Research Gaps:

Despite extensive discussions on financial inclusion and microfinance initiatives for street vendors, there remains a significant gap in understanding the empirical impact of the PM SVANidhi Yojana on the socio-economic well-being of beneficiaries, particularly in regional contexts like Indore. Existing literature highlights challenges such as limited access to formal credit, economic vulnerability, and financial instability, but there is a lack of focused research assessing whether PM SVANidhi has effectively addressed these concerns. While government reports provide data on loan disbursement and outreach, they do not offer in-depth analysis on whether the financial support has translated into sustainable income growth, enhanced digital financial adoption, and long-term business stability for vendors. Furthermore, there is limited exploration of procedural challenges, awareness levels, and repayment behaviors among beneficiaries, leaving critical gaps in understanding the practical barriers to the scheme’s successful implementation. By addressing these gaps, this study aims to generate data-driven insights into the effectiveness of PM SVANidhi, contributing to policy recommendations for improving its reach and impact on urban street vendors.

This study adopts a descriptive research design to analyze the socio-economic impact of the PM SVANidhi Yojana among street vendors in Indore. Primary data is collected through a structured questionnaire, designed to gather insights on beneficiaries' financial stability, business growth, digital financial adoption, and challenges faced in availing the scheme. A non-probability purposive sampling technique is employed to ensure that only street vendors who have availed benefits under the PM SVANidhi scheme are included in the study. The sample size consists of 100 street vendors from various locations in Indore, ensuring a diverse representation of beneficiaries. The collected data is analyzed using descriptive and inferential statistical methods to identify trends, assess the effectiveness of the scheme, and provide actionable insights for policy improvements.

Challenges in Accessing and Utilising the scheme:

Despite the intended benefits of the PM SVANidhi Yojana, street vendors face several challenges in accessing and utilizing the scheme effectively. A major barrier is the lack of awareness about the scheme’s provisions, eligibility criteria, and application procedures, especially among vendors with limited literacy and digital proficiency. The documentation requirements and the necessity of possessing a vendor certificate or registration with local authorities further restrict many eligible vendors from applying. Additionally, procedural delays, lengthy verification processes, and reluctance from financial institutions to process loans for informal sector workers hinder seamless access to credit. Even for those who successfully obtain loans, challenges persist in utilizing digital financial services, repaying installments on time due to fluctuating income patterns, and expanding their businesses sustainably. Moreover, vendors often struggle with high competition, lack of permanent vending spaces, and regulatory uncertainties, which further diminish the scheme's overall effectiveness in ensuring long-term financial stability. Addressing these challenges through simplified procedures, targeted awareness campaigns, and stronger institutional support can enhance the scheme’s outreach and impact.

A survey was conducted with an aims to assess the challenges faced by street vendors in accessing and utilizing the PM SVANidhi Yojana in Indore. The scheme, launched to provide collateral-free micro-loans to street vendors, has played a crucial role in promoting financial inclusion. However, despite its benefits, many vendors encounter barriers related to awareness, documentation, loan processing, digital financial adoption, and repayment difficulties. Through this structured survey, we seek to gather quantitative insights into these challenges, enabling a better understanding of the effectiveness of the scheme and identifying areas for policy improvements and better implementation strategies. The responses will contribute to evidence-based recommendations for enhancing financial accessibility and economic stability for street vendors.

Table 1.1: Challenges Faced by Street Vendors in Accessing and Utilizing the PM SVANidhi Yojana

The table 1.1 indicate that street vendors in Indore face significant challenges in accessing and utilizing the PM SVANidhi Yojana. Lack of awareness (55%) and difficulty in documentation (55%) emerge as major barriers, highlighting the need for improved outreach and simplified application processes. Lengthy verification and approval processes (55%) also pose difficulties, suggesting bureaucratic inefficiencies that delay financial support. Additionally, limited access to digital financial services (48%) reflects a gap in digital literacy and infrastructure, preventing vendors from fully utilizing digital transactions. Loan repayment issues (55%) due to irregular income patterns further indicate financial instability among beneficiaries. These findings emphasize the necessity of streamlined procedures, enhanced awareness campaigns, and tailored financial support mechanisms to improve the scheme’s effectiveness and long-term impact.

Impact of PM SVANidhi Yojna on socio-economic status of Street Vendors:

The PM SVANidhi Yojana has played a crucial role in enhancing the socio-economic status of street vendors by providing collateral-free micro-loans, thereby enabling them to expand their businesses and achieve financial stability. Access to formal credit has reduced reliance on informal moneylenders, lowering the burden of high-interest loans and improving profit margins. Many vendors have been able to invest in better infrastructure, diversified products, and digital payment systems, increasing their customer base and revenue. The scheme has also contributed to financial inclusion, as many vendors have opened bank accounts and adopted digital transactions, fostering economic empowerment. Additionally, the program has had a positive social impact, improving the vendors' standard of living by enabling better housing, healthcare, and education opportunities for their families. However, challenges such as delayed loan disbursement, lack of awareness, and digital illiteracy persist, limiting its full potential. Strengthening implementation strategies and providing continuous financial literacy support can further enhance the scheme’s impact, ensuring the long-term economic upliftment of street vendors.

To test the hypothesis “There is no significant impact of PM SVANidhi Yojna on the socio-economic status of Street Vendors in Indore”, paired sample t-test has been applied taking the level of income, savings, business expansion, digital transactions and loan repayment before utilising the scheme and after utilising the scheme.

Table 1.2 T-Test Results Table (Including Socio-Economic Parameters)

Interpretation:

The results indicate a statistically significant positive impact of the PM SVANidhi Yojana on multiple socio-economic factors of street vendors in Indore:

1. Income and Savings have increased, improving financial stability.
2. Business Expansion has risen from 45% to 95%, indicating growth.
3. Use of Digital Transactions has more than doubled, signifying financial inclusion.
4. Loan Repayment Burden has reduced, suggesting improved debt management.

Since the p-value is much lower than 0.05, we reject the null hypothesis and confirm that the PM SVANidhi Yojana has a significant impact on the socio-economic status of street vendors

The study comprehensively analyzed the socio-economic impact of the PM SVANidhi Yojana on street vendors in Indore, focusing on key parameters such as income, savings, business expansion, digital transaction adoption, and loan repayment. The findings indicate a significant improvement in the financial stability of beneficiaries, with a substantial increase in income and savings, enabling them to invest in business growth and sustain their livelihoods. Business expansion rose notably, and the adoption of digital transactions more than doubled, reflecting greater financial inclusion. Additionally, vendors experienced a reduction in loan repayment burdens, suggesting enhanced debt management. The statistically significant results from the t-test validate that the scheme has played a pivotal role in empowering street vendors economically. Thus, the study concludes that PM SVANidhi Yojana has had a profound and positive impact on the socio-economic well-being of street vendors, improving their financial independence and long-term business sustainability. However, continued efforts are required to address challenges in accessibility, awareness, and efficient utilization of the scheme, ensuring its benefits reach a larger segment of the target population.

Recommendation:

To further enhance the impact of the PM SVANidhi Yojana, it is recommended that the government and implementing agencies focus on improving awareness and accessibility of the scheme, especially among marginalized vendors who may struggle with documentation and digital literacy. Training programs should be introduced to help vendors effectively utilize digital payment systems and manage their finances efficiently. Additionally, simplifying the loan application process and providing higher credit limits based on repayment history can encourage long-term business growth. Regular monitoring and feedback mechanisms should be implemented to assess challenges faced by vendors and make necessary policy adjustments. Collaboration with local bodies, financial institutions, and NGOs can further strengthen support systems, ensuring that beneficiaries receive not only financial assistance but also guidance on business expansion and sustainability. Lastly, integrating social security benefits such as insurance and pension schemes into the program can enhance the overall socio-economic security of street vendors, promoting their long-term financial stability.

1. Government of India. (n.d.). PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi). National Portal of India. Retrieved from citeturn0search8
2. Harpreet Kaur, & Sanpreet Kaur. (2017). Issues and challenges faced by women street vendors. International Journal of Novel Research and Development, 2(1), 69-75. Retrieved from citeturn0search5
3. IMPRI Impact and Policy Research Institute. (2024). PM SVANidhi Yojana, 2020. Retrieved from citeturn0search0
4. Press Information Bureau. (2023, August 3). 50 lakh street vendors covered under PM SVANidhi Scheme. Government of India. Retrieved from citeturn0search6
5. SBI Research. (2023). Phenomenal impact of PM SVANidhi Scheme on street vendors: An analysis. State Bank of India. Retrieved from citeturn0search10
6. These references provide insights into the PM SVANidhi scheme's objectives, implementation, and its impact on street vendors in India, as well as the challenges faced by this sector.