NEW DELHI: In a significant move to empower the country’s street vendors, the Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved a major restructuring and extension of the PM SVANidhi (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) scheme. The revamped plan includes an increase in loan amounts, the introduction of UPI-linked RuPay credit cards, and an extension of the scheme’s duration to March 2030.
The cabinet has allocated a total outlay of ₹7,332 crore for the restructured and expanded scheme. The aim is to provide enhanced credit access, boost digital adoption, and ensure the holistic socio-economic development of street vendors and their families.
Key Changes to the Scheme
First launched in June 2020 during the COVID-19 pandemic, the PM SVANidhi scheme provided collateral-free loans to street vendors in three tranches. The new revamp significantly enhances the financial assistance available:
- First Loan: The initial loan amount has been increased from ₹10,000 to ₹15,000.
- Second Loan: The second loan tranche has been raised from ₹20,000 to ₹25,000.
- Third Loan: The third loan amount remains at ₹50,000, continuing to support business expansion.
A major new feature is the provision of UPI-linked RuPay credit cards. This will provide beneficiaries who have successfully repaid their second loan with instant access to credit for both business and personal needs.
Furthermore, the government has extended the lending period until March 2030, ensuring the scheme’s long-term sustainability. The scheme’s reach will also be expanded beyond statutory towns to include census towns and peri-urban areas in a graded manner, aiming to benefit 1.15 crore beneficiaries, including 50 lakh new entrants.
Beyond Credit: Digital Incentives and Social Welfare
The revamped scheme continues to incentivize digital adoption. The existing cashback program for digital transactions has been enhanced, with vendors now able to earn up to ₹1,600 on retail and wholesale transactions, up from the previous ₹1,200.
Under the ‘SVANidhi se Samriddhi’ program, the scheme will be further strengthened to ensure that street vendors and their families can avail the benefits of other central welfare programs. This will be facilitated through monthly ‘Lok Kalyan Melas’ to ensure a “saturation approach” in providing social security and welfare benefits to the community.
Since its launch, the scheme has made a significant impact. As of July 30, 2025, over 9.6 million loans amounting to ₹13,797 crore have been disbursed to more than 6.8 million street vendors. Additionally, nearly 4.7 million beneficiaries have earned a total cashback of ₹241 crore through digital transactions.
A 2023 study by State Bank of India highlighted the scheme’s inclusive nature, reporting that 43% of beneficiaries were women, 44% belonged to the OBC category, and 22% were from Scheduled Castes and Scheduled Tribes.