Big Boost for Street Vendors: Modi Govt Extends PM SVANidhi Scheme with Higher Loans
The Modi government has approved the extension and restructuring of the PM SVANidhi scheme till 2030, raising loan limits and offering digital incentives to support over 1.15 crore street vendors.
- Loan limit increased to ₹15,000 in first phase
- UPI-linked RuPay credit cards introduced for vendors
- Scheme extended till March 2030 with ₹7,332 crore allocation
The Union Cabinet, chaired by Prime Minister Narendra Modi, has cleared a major decision to extend and restructure the PM Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) scheme. With a total budget of ₹7,332 crore, the initiative will now run until March 31, 2030, bringing relief and opportunities to millions of small vendors across India.
Under the revised plan, loan amounts have been enhanced. The first loan limit has gone up from ₹10,000 to ₹15,000, while the second has been raised from ₹20,000 to ₹25,000. The third loan remains at ₹50,000. Vendors who repay on time will also be eligible for UPI-linked RuPay credit cards to cover urgent personal or business needs. To encourage digital adoption, those opting for retail or wholesale transactions via online payments can receive incentives of up to ₹1,600.
The government expects around 1.15 crore street vendors to benefit from this restructuring, including 50 lakh new beneficiaries. The scheme will continue to be implemented jointly by the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS). While MoHUA will lead the program, DFS will coordinate with banks and financial institutions to ensure smooth access to loans and credit cards.
Beyond financial support, the revamped PM SVANidhi aims at capacity building. Street vendors will receive training in entrepreneurship, financial literacy, digital skills, and marketing. Food vendors, in particular, will undergo training in partnership with the Food Safety and Standards Authority of India (FSSAI) to meet hygiene and safety standards.
Originally launched on June 1, 2020, during the COVID-19 pandemic, the scheme was designed to help street vendors recover from economic disruptions. Since then, it has grown beyond a financial aid program, giving vendors formal recognition within the economy. By July 30 this year, over 96 lakh loans worth ₹13,797 crore had been disbursed to 68 lakh vendors. Nearly 47 lakh digital-active beneficiaries have conducted over 557 crore digital transactions, amounting to more than ₹6.09 lakh crore, earning cashback worth ₹241 crore.
With stronger financial access, digital incentives, and capacity-building programs, the extended PM SVANidhi scheme is expected to transform the livelihoods of street vendors, ensuring they remain an integral part of India’s urban economy.
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