New Delhi: In a significant move to bolster financial support for India’s street vendors, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has greenlit the restructuring and prolongation of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme. This initiative, originally set to conclude its lending phase by December 31, 2024, will now continue providing crucial loans until March 31, 2030. With a substantial total allocation of ₹7,332 crore, the revamped program is poised to assist 1.15 crore individuals, encompassing 50 lakh fresh participants, marking a pivotal step in promoting economic self-reliance among urban hawkers.
The PM SVANidhi scheme, classified as a Central Sector Scheme, falls under the purview of the Ministry of Housing and Urban Affairs. It collaborates closely with the Department of Financial Services (DFS), which handles the facilitation of loans and credit cards via banking institutions and their on-ground staff. The core mission of this program is to deliver working capital financing, foster financial integration, encourage the use of electronic payments, and grant formal acknowledgment to street vendors operating in urban zones as of or prior to March 24, 2020.
Key Enhancements in Loan Structures for Greater Accessibility
One of the standout updates in the restructured framework involves boosted loan ceilings in the initial two installments. The first installment has been elevated to ₹15,000, up from the previous ₹10,000, offering vendors a stronger starting point for their businesses. Similarly, the second installment now stands at ₹25,000, an increase from ₹20,000, while the third installment holds steady at ₹50,000. These adjustments are designed to provide more substantial financial backing, enabling vendors to scale their operations amid rising economic pressures.
Adding to the scheme’s appeal, beneficiaries who successfully settle their second loan will qualify for a UPI-integrated RuPay Credit Card. This feature promises swift availability of funds for urgent commercial or personal needs, streamlining credit access in a digital era. Furthermore, to incentivize the shift toward cashless economies, participants can earn cashback rewards of up to ₹1,600 on both retail and wholesale UPI-based dealings.
Expanding Reach and Promoting Digital and Skill Development
The scheme’s geographical scope is broadening beyond traditional statutory towns to include census towns and peri-urban regions progressively. This expansion ensures that a wider array of vendors, often overlooked in formal economic systems, can tap into these benefits. Complementing the financial aids, the program emphasizes capacity enhancement through targeted training sessions. Vendors will receive education in financial management, business startups, online competencies, and promotional strategies. For those in the food sector, specialized instruction on cleanliness and safety protocols will be delivered in collaboration with the Food Safety and Standards Authority of India (FSSAI).
To achieve comprehensive well-being for vendors and their households, the ‘SVANidhi se Samriddhi’ element is being fortified. This involves organizing regular monthly Lok Kalyan Melas, aimed at connecting participants with diverse government welfare initiatives in a thorough manner, ensuring saturation coverage of benefits.
Historical Context and Remarkable Achievements of PM SVANidhi
Introduced on June 1, 2020, amid the global COVID-19 crisis, PM SVANidhi was conceived to aid street vendors grappling with severe disruptions. Beyond mere monetary relief, it has instilled a sense of dignity and official validation for their role in the national economy. As per data up to July 30, 2025, the scheme has distributed over 96 lakh loans totaling ₹13,797 crore to more than 68 lakh vendors.
In terms of digital engagement, approximately 47 lakh active users have executed over 557 crore electronic transactions valued at ₹6.09 lakh crore, accumulating ₹241 crore in cashback rewards. The ‘SVANidhi se Samriddhi’ drive has surveyed 46 lakh individuals across 3,564 Urban Local Bodies, resulting in more than 1.38 crore approvals under linked schemes.
The program’s success has not gone unnoticed, earning the Prime Minister’s Award for Excellence in Public Administration in 2023 for central-level innovation in economic stimulation, livelihood promotion, financial accessibility, and digital advancement. It also secured the Silver Award for Excellence in Government Process Re-engineering for Digital Transformation in 2022.
Implications for Street Vendors and Broader Economic Growth
This extension and overhaul of PM SVANidhi underscore the government’s commitment to nurturing grassroots entrepreneurship. By offering dependable financing, it paves the way for business growth and long-term viability. The integration of UPI-linked credit options and digital perks aligns with India’s push toward a cashless society, potentially transforming how small-scale traders operate.
Experts believe this could catalyze inclusive progress, uplifting not just vendors but also their communities through enhanced socio-economic status. The focus on holistic development—encompassing skills, health standards, and welfare linkages—positions the scheme as a multifaceted tool for urban renewal, turning bustling street markets into efficient, sustainable hubs.
In related developments, while the cabinet’s decision dominates headlines, other national events include celebrations of National Sports Day commemorating the birth of hockey icon Major Dhyan Chand, Prime Minister Modi’s two-day trip to Tokyo for the 15th India-Japan Annual Summit, flood impacts in Punjab affecting numerous villages, and temporary halts in Jammu Division rail services. However, the PM SVANidhi updates stand out for their direct impact on millions of livelihoods.
Future Outlook: Transforming Urban Ecosystems
Looking ahead, the prolonged timeline until 2030 provides ample opportunity for the scheme to evolve further. With joint oversight by MoHUA and DFS, implementation is expected to be seamless, leveraging banks and financial entities for grassroots delivery. The emphasis on emergency credit via RuPay cards addresses real-time needs, such as sudden inventory requirements or personal emergencies, which are common in the volatile world of street vending.
The cashback mechanism, capped at ₹1,600, serves as a nudge for vendors to embrace digital tools, potentially increasing transaction volumes and integrating them into formal banking channels. Capacity-building efforts, including FSSAI-partnered hygiene training, could elevate food quality standards, benefiting public health and vendor credibility.
The ‘SVANidhi se Samriddhi’ enhancements, with monthly melas, aim for a ‘saturation approach’ to welfare, ensuring no eligible family misses out on government programs. This convergence strategy could amplify the scheme’s reach, linking it with other initiatives for comprehensive support.
Since its launch, PM SVANidhi has transcended its pandemic-relief origins, becoming a cornerstone of urban economic policy. The disbursement figures—96 lakh loans to 68 lakh vendors—highlight its scale, while the digital transaction metrics underscore its role in fintech adoption. The profiling of 46 lakh beneficiaries leading to 1.38 crore sanctions demonstrates effective groundwork in 3,564 ULBs.
Awards like the 2023 PM Excellence Award and 2022 Silver Award validate its innovative approach to public administration and digital re-engineering. As India advances toward economic resilience, schemes like this are vital for bridging the gap between informal sectors and mainstream growth.
In conclusion, the Union Cabinet’s approval for restructuring PM SVANidhi marks a forward-thinking policy shift. By extending the lending period to March 31, 2030, increasing loan amounts, introducing UPI-linked RuPay Credit Cards, offering digital cashbacks, expanding coverage to census and peri-urban areas, and bolstering capacity building and welfare linkages, the scheme is set to empower 1.15 crore street vendors, including 50 lakh newcomers. With a ₹7,332 crore outlay and joint ministry implementation, it promises holistic socio-economic upliftment, fostering vibrant urban ecosystems. For street vendors facing daily challenges, this revamp offers not just funds but a pathway to dignity and prosperity.
Frequently Asked Questions (FAQs)
1. What is the PM SVANidhi Scheme, and who is eligible to benefit from it?
The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a Central Sector Scheme launched on June 1, 2020, by the Ministry of Housing and Urban Affairs to provide working capital loans to street vendors in urban areas. It aims to promote financial inclusion, digital payments, and formal recognition of vendors’ contributions to the economy. Eligibility is limited to street vendors and hawkers operating in urban areas as of or before March 24, 2020. The restructured scheme targets 1.15 crore beneficiaries, including 50 lakh new vendors, with coverage expanding to census towns and peri-urban areas.
2. What are the new loan amounts under the restructured PM SVANidhi Scheme?
The restructured scheme has increased loan amounts for the first two tranches. The first tranche now offers up to ₹15,000 (previously ₹10,000), the second tranche provides up to ₹25,000 (previously ₹20,000), while the third tranche remains unchanged at ₹50,000. These enhanced limits aim to provide greater financial support for vendors to expand their businesses.
3. What are the benefits of the UPI-linked RuPay Credit Card introduced in the scheme?
Vendors who successfully repay their second loan are eligible for a UPI-linked RuPay Credit Card. This card offers immediate access to credit for urgent business or personal needs, enhancing financial flexibility. Additionally, vendors can earn cashback incentives of up to ₹1,600 on retail and wholesale UPI transactions, encouraging digital payment adoption.
4. How does the scheme support capacity building and welfare for street vendors?
The restructured PM SVANidhi Scheme emphasizes capacity building through training in financial literacy, entrepreneurship, digital skills, and marketing. Street food vendors receive hygiene and food safety training in partnership with the Food Safety and Standards Authority of India (FSSAI). The ‘SVANidhi se Samriddhi’ component organizes monthly Lok Kalyan Melas to connect vendors and their families with various government welfare schemes, ensuring comprehensive socio-economic support.
5. How has the PM SVANidhi Scheme performed so far, and what is its future outlook?
As of July 30, 2025, the scheme has disbursed over 96 lakh loans worth ₹13,797 crore to more than 68 lakh vendors. Nearly 47 lakh digitally active beneficiaries have completed 557 crore digital transactions valued at ₹6.09 lakh crore, earning ₹241 crore in cashbacks. The scheme has won the 2023 Prime Minister’s Award for Excellence in Public Administration and the 2022 Silver Award for Digital Transformation. Extended until March 31, 2030, with a ₹7,332 crore outlay, it aims to foster inclusive growth and transform urban ecosystems by empowering vendors with reliable financing and skills.
