Cabinet extends PM SVANidhi scheme till 2030 with ₹7,332 crore outlay

Union Cabinet approves revamp of PM SVANidhi scheme with higher loan limits, RuPay credit cards, cashback incentives and wider coverage for 1.15 crore street vendors till 2030

The Centre on Wednesday jacked up the collateral-free loan amount extended to street vendors by ₹5000 and also assured them of UPI-linked RuPay credit cards as it revamped and extended the PM SVANidhi scheme till March 31, 2030.

 

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme -- which was introduced in 2020 during pandemic to support street vendors -- was supposed to end in December 31, 2024.

 

The decision was taken by Union Cabinet, chaired by Prime Minister Narendra Modi. It also sanctioned a total outlay of ₹7,332 crore for the scheme.

 

Earlier, registered street vendors used to get ₹ 10,000 credit in the first tranche. After successful repayment, they used to get ₹20,000 and ₹50,000.

 

But now, after the revamp, they would get ₹15,000, ₹25,000 in the first two tranches. The third tranche remains unchanged at ₹50,000, according to a statement released by the government.

 

It claimed that the revamped scheme aims to benefit 11.5 million street vendors, including 5 million new beneficiaries.

 

Its implementation will be jointly overseen by the Ministry of Housing & Urban Affairs (MoHUA) and the Department of Financial Services (DFS), with DFS facilitating credit access through banks and financial institutions.

 

Beneficiaries who successfully repay their second loan will also be eligible for a UPI-linked RuPay credit card to access instant credit for business and personal needs.

 

The statement said that to boost digital adoption, vendors can earn cashback incentives of up to ₹ 1,600 on retail and wholesale transactions. The scheme will also expand its geographical reach beyond statutory towns to census towns and peri-urban areas in a phased manner.

 

Capacity-building initiatives will focus on entrepreneurship, financial literacy, digital skills, and marketing. Street food vendors will receive standard hygiene and food safety training in partnership with FSSAI.

 

Additionally, the ‘SVANidhi se Samriddhi’ component will be strengthened through monthly Lok Kalyan Melas to ensure saturation coverage of government welfare schemes for vendors and their families.

 

Since its launch in June 2020, PM SVANidhi has disbursed over 9.6 million loans worth ₹13,797 crore to 6.8 million vendors. Nearly 4.7 million digitally active beneficiaries have carried out 5570 million digital transactions valued at ₹6.09trillion, earning ₹241 crore in cashback. Under ‘SVANidhi se Samriddhi’, 4.6 million beneficiaries across 3,564 urban local bodies have been profiled, leading to over 13.8 million sanction of benefits under other government schemes.

 

“The extension of the scheme envisages the holistic development of street vendors by offering a reliable source of finance to support business expansion and opportunities for sustainable growth. This will not only empower street vendors but will also foster inclusive economic growth, socio-economic uplift of street vendors and their families enhancing their livelihoods, and ultimately transforming urban spaces into a vibrant, self-sustaining ecosystem,” said the government press statement.