New Delhi: The Indian government’s Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme has been extended for another five years, now set to run until March 31, 2030. With a total outlay of ₹7,332 crore, the scheme aims to benefit 1.15 crore street vendors, including 50 lakh new beneficiaries. The revised initiative includes increased loan amounts, the introduction of UPI-linked RuPay credit cards, and cashback incentives to enhance digital transactions.
Extension of a Lifeline for Street Vendors
The Union Cabinet, led by Prime Minister Narendra Modi, has recently approved the significant extension of the PM SVANidhi Scheme, initially launched in June 2020 to support street vendors struggling during the COVID-19 pandemic. The revised lending period, which now extends until March 31, 2030, comes as a much-needed relief for many entrepreneurs who have faced ongoing challenges in a fluctuating economic environment.
With a planned outlay of ₹7,332 crore, the scheme is expected to benefit 1.15 crore street vendors. This includes 50 lakh new beneficiaries, recognizing the growing number of individuals relying on street vending to sustain their families and contribute to the Indian economy.
Enhanced Loan Features and Digital Incentives
One of the standout features of the revised PM SVANidhi Scheme is the increase in loan limits. The first tranche loans have been raised to ₹15,000 from ₹10,000, while second tranche loans now stand at ₹25,000 compared to the previous ₹20,000. The third tranche remains unchanged at ₹50,000, allowing vendors to access more funding to enhance or sustain their businesses.
In an effort to stimulate digital adoption, beneficiaries who successfully repay their second loans can now apply for UPI-linked RuPay credit cards. This means street vendors will have immediate access to credit, making it easier to manage day-to-day business expenses. Moreover, to encourage a shift to digital transactions, the government is incentivizing vendors with cashback offers of up to ₹1,600 when they make retail and wholesale transactions digitally.
Focus on Skill Development and Safety
The PM SVANidhi Scheme goes beyond providing financial assistance; it aims to foster a culture of entrepreneurship among street vendors. The initiative includes training programs focused on financial literacy, digital skills, marketing, and even hygiene standards. Collaborating with the Food Safety and Standards Authority of India (FSSAI), the government will offer standard hygiene and food safety training specifically tailored for street food vendors. This initiative ensures that not only will the vendors gain access to funds, but they will also learn essential skills to improve the quality and safety of their offerings.
The scheme’s ‘SVANidhi se Samriddhi’ component is another pillar of support, reinforcing the overall welfare and development of street vendors and their families. The government plans to conduct monthly Lok Kalyan Melas, which will serve as a platform to channel various benefits under Government of India schemes directly to these vendors. This saturation approach aims to reach every eligible family and bolster their financial stability and quality of life.
Successful Implementation and Impact
The PM SVANidhi Scheme has already made remarkable strides since its inception. As of July 30, 2025, over 96 lakh loans totaling ₹13,797 crore have been disbursed to more than 68 lakh street vendors. Almost half of these beneficiaries are now digitally active, having conducted over 557 crore transactions worth ₹6.09 lakh crore, earning a cumulative cashback of ₹241 crore.
The sense of empowerment felt by these vendors is palpable. For instance, consider Nisha, a street vendor from Delhi who sold snacks during the pandemic. With financial support from the PM SVANidhi Scheme, she expanded her business and embraced digital payments, which not only increased her sales but also allowed her to hire additional staff, thereby providing more job opportunities.
These case studies exemplify how the scheme is not just a financial lifebuoy; it’s a stepping stone towards a more resilient and digitally inclusive economy. By focusing on empowering one of the most vulnerable segments of the economy, the Indian government is setting a precedent for future initiatives aimed at uplifting small-scale entrepreneurs.
In conclusion, the extension and restructuring of the PM SVANidhi Scheme represent a significant commitment by the Indian government to provide ongoing support to street vendors. With enhanced loan amounts, UPI-linked credit cards, and a focus on digital transactions and skill development, the scheme aims to not only boost individual livelihoods but also contribute to the overall growth of the Indian economy. As street vendors increasingly adopt digital tools, they are likely to find new avenues for success, helping to pave the way for a more inclusive financial ecosystem in India.
Bankerpedia’s Insight💡
The extension of the PM SVANidhi Scheme is a significant step for India’s banking and finance sector, empowering street vendors with enhanced credit access and digital tools. By offering UPI-linked RuPay credit cards and increasing loan amounts, the initiative fosters financial inclusion and resilience for millions. This move not only boosts the grassroots economy but also encourages digital transactions, crucial for the nation’s economic recovery. For individuals, it’s a chance to embrace digital finance—seize the opportunity to enhance your business capabilities while staying informed about responsible borrowing.
What Does This Mean for Me?🤔
- Salaried Person → Limited direct impact; mainly affects street vendors, not salaried users.
- Business Owner → Access to increased credit and digital cash incentives.
- Student → Increased financial support for student-led street vendor initiatives.
- Self-employed → Improved access to credit and digital transaction incentives.
- Homemaker → Possible credit access for homemakers’ small business ventures.
- Retiree / Senior Citizen → No direct impact; scheme targets street vendors primarily.
- Job Seeker → Increased funding and credit access for street vendors.
- Farmer / Rural Citizen → Access to credit and financial support extended to vendors.
Research References📚
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