PM SVANidhi Scheme 2025: Restructuring, Extension, and New Features Explained
- TPP
- Nov 9
- 4 min read
Empowering Street Vendors through Financial Inclusion, Digital Access, and Sustainable Livelihoods.
The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme was launched by the Ministry of Housing and Urban Affairs (MoHUA) on June 1, 2020, as a Central Sector Scheme (i.e., fully funded by the Central Government).
Its primary aim was to provide affordable working capital loans to street vendors — individuals engaged in vending articles, goods, food items, or offering services on streets, footpaths, and public spaces — whose livelihoods were severely impacted by the COVID-19 lockdown.
Originally, the scheme was valid up to March 2022, later extended till December 31, 2024.
Now, Recently, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the “Restructuring and Extension of PM SVANidhi Scheme” up to March 31, 2030 with a total financial outlay of ₹7,332 crore.
Key Objectives of the Restructured PM SVANidhi Scheme
Holistic Development of Street Vendors – Providing a reliable source of finance for business expansion and sustainable growth.
Financial Inclusion and Digital Empowerment – Encouraging use of digital payments and providing formal recognition to vendors.
Promotion of Entrepreneurship – Enhancing financial literacy, marketing, and digital skills.
Socio-economic Upliftment – Through convergence with other welfare schemes via ‘SVANidhi se Samriddhi’.
Target Beneficiaries
The restructured scheme aims to benefit 1.15 crore street vendors, including 50 lakh new beneficiaries.
Definition – Street Vendor:Any person engaged in vending of articles, goods, wares, food items, or services of daily use to the public in streets, pavements, or from temporary built structures/movable setups.
Examples of goods: Vegetables, fruits, ready-to-eat food, tea, pakodas, bread, eggs, textiles, apparel, artisan products, books, stationery.
Examples of services: Barber shops, cobblers, pan shops, laundry services, etc.
Eligibility conditions: To avail loans, vendors must:
Possess a Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs); or
Have been identified in a ULB survey but not yet issued the certificate; or
Obtain a Letter of Recommendation (LoR) from the ULB or Town Vending Committee (TVC) through:
Documents of past vending loans; or
Membership in vendor associations (e.g., NASVI, NHF, SEWA); or
Local enquiry by ULB verifying vending activity.
Provide KYC documents such as Aadhaar, Voter ID, Driving Licence, MNREGA Card, or PAN Card.
Enhanced Loan Structure under the Restructured Scheme
Loan Tranche | Earlier Amount | Revised Amount (2025) |
First Tranche | ₹10,000 | ₹15,000 |
Second Tranche | ₹20,000 | ₹25,000 |
Third Tranche | ₹50,000 | ₹50,000 (unchanged) |
Key Financial Features:
Interest Subsidy: 7% per annum, credited quarterly via Direct Benefit Transfer (DBT) for timely/early repayment.
No penalty for early repayment.
Credit Escalation: Vendors who repay on time become eligible for higher loan amounts in subsequent tranches.
Digital Empowerment: RuPay Credit Card & UPI Integration
A major innovation in the restructured PM SVANidhi scheme is the introduction of a UPI-linked RuPay Credit Card.
Provided to vendors after repayment of the second loan, offering instant credit access for business and personal needs.
Promotes financial inclusion and cashless transactions, aligning with Digital India goals.
Digital Cashback Incentives: Vendors can earn up to ₹1,600 as cashback for retail and wholesale UPI transactions, promoting digital adoption among micro-entrepreneurs.
Scheme Coverage Expansion
The PM SVANidhi scheme’s reach has been expanded beyond statutory towns to include:
Census towns,
Peri-urban areas, and
Other evolving urban settlements — in a graded manner.
This ensures wider coverage and inclusion of semi-urban and transitioning urban populations.
Institutional Framework & Implementation
Implementation is a joint responsibility of:
Ministry of Housing & Urban Affairs (MoHUA), and
Department of Financial Services (DFS), under the Ministry of Finance.
DFS Responsibilities:
Facilitating access to loans and credit cards through banks, financial institutions, and their ground-level functionaries.
Implementing Partner: The Small Industries Development Bank of India (SIDBI) serves as the implementing agency, ensuring financial flow and coordination with lenders.
Capacity Building & Convergence Initiatives
The restructured scheme emphasizes holistic capacity development of street vendors through:
Entrepreneurship training,
Financial literacy,
Digital skills and marketing workshops,
Hygiene and food safety training (in collaboration with FSSAI) for food vendors.
‘SVANidhi se Samriddhi’ Initiative
This flagship component ensures convergence of multiple welfare schemes for the benefit of vendors and their families.
Strengthened through monthly “Lok Kalyan Melas” (public welfare fairs).
Facilitates linkage of vendors to various Government of India schemes like PM Jan Dhan Yojana, PM Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana, and others — ensuring a saturation approach.
Achievements (as of July 30, 2025)
Parameter | Achievement |
Total loans disbursed | 96 lakh loans |
Loan value | ₹13,797 crore |
Total beneficiaries | 68 lakh |
Digitally active beneficiaries | 47 lakh |
Digital transactions | 557 crore transactions worth ₹6.09 lakh crore |
Cashback earned | ₹241 crore |
Beneficiaries profiled under ‘SVANidhi se Samriddhi’ | 46 lakh across 3,564 ULBs |
Total scheme sanctions (through convergence) | 1.38 crore |
National Recognition & Awards
PM SVANidhi has received multiple national awards for innovation and governance:
Prime Minister’s Award for Excellence in Public Administration (2023) — Innovation (Central Level) category.
Silver Award (2022) — Excellence in Government Process Re-engineering for Digital Transformation.
These recognitions highlight its success in boosting urban livelihoods, promoting financial inclusion, and driving digital empowerment.
Significance and Expected Impact
The extension till March 31, 2030 reflects the Government’s long-term commitment to empower the street vendor community — a vital segment of India’s informal urban economy.
Expected outcomes include:
Sustainable livelihood generation for 1.15 crore beneficiaries.
Inclusive economic growth through easy access to credit.
Formal recognition and identity for street vendors.
Digital and financial empowerment across urban and peri-urban India.
Transformation of urban spaces into vibrant, self-sustaining ecosystems.
The PM SVANidhi Scheme represents a landmark initiative for urban livelihood revival, financial inclusion, and digital empowerment.
By extending it to 2030 and restructuring its features, the government aims to transform India’s street vendor ecosystem — turning it into a digitally connected, financially stable, and socially empowered segment of the economy.
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