PM SVANidhi scheme, launched June 1, 2020, completed six years of providing collateral-free micro-credit to street vendors. Administered by Ministry of Housing and Urban Affairs, it offers loans up to ₹50,000 in three tranches (₹10,000, ₹20,000, ₹50,000) with subsidized interest rates. Over 78 lakh vendors have received loans worth ₹9,650 crores. The scheme includes digital payment incentives, insurance coverage, and skill development components, supporting vendor formalization and financial inclusion.

PM SVANidhi represents India's targeted response to urban informal sector challenges, particularly addressing street vendors' exclusion from formal credit systems. Post-COVID launch timing was strategic, providing immediate relief to vendors whose livelihoods were devastated by lockdowns. The scheme's three-tier loan structure encourages responsible borrowing while enabling business expansion. Interest subvention of 7% makes formal credit accessible, reducing dependence on exploitative moneylenders. Digital payment incentives (monthly cashback up to ₹100) promote financial inclusion and transparency. Integration with existing urban development frameworks like PM-SVANIDHI connects credit provision with broader urban planning. The scheme's success lies in its holistic approach—combining credit access with insurance coverage (₹2 lakh accident insurance), skill development, and vendor certification. This model demonstrates how targeted financial inclusion can formalize informal economy participants. High approval rates (over 90%) and minimal defaults showcase effective design. The scheme's linkage with Aadhaar, bank accounts, and digital platforms exemplifies Digital India principles. For UPSC perspective, it illustrates inclusive growth strategies, urban governance innovations, and post-pandemic economic recovery mechanisms.