Evaluating the Role of PM SVANidhi in Advancing Financial Inclusion and Socio-economic Development among Nano Entrepreneurs in Northeastern India

Abstract

The Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) Scheme, launched in June 2020, is a flagship initiative of the Government of India aimed at empowering street vendors through access to affordable micro-credit. The scheme provides an initial working capital loan of up to ₹10,000, incentivizes timely repayment, and promotes digital transactions through cashback and interest subsidy. This research paper evaluates the role of PM SVANidhi in fostering financial inclusion and promoting socioeconomic development among nano entrepreneurs in the northeastern states of India. Given the unique socio-cultural, geographic, and economic conditions of the region, the scheme’s implementation faces specific challenges, including infrastructural limitations, digital illiteracy, and exclusion of marginalized communities. Using secondary data from the PM SVANidhi portal, the study analyses indicators such as loan eligibility, disbursement, repayment behaviour, gender participation, digital activation, and institutional support. The findings reveal significant variation across states in terms of scheme outreach, effectiveness, and beneficiary impact. The study highlights strong participation from women and Scheduled Tribe communities in certain states, contrasted by low repayment rates and infrastructure gaps in others. The paper concludes with policy recommendations to improve digital access, gender equity, repayment behaviour, and financial literacy, with the objective of enhancing the long-term sustainability of the scheme and ensuring equitable growth for nano entrepreneurs across the region.