Cabinet Approves Restructuring and Extension of PM SVANidhi Scheme

Extension of Lending Period
The Union Cabinet has approved the restructuring of the Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme. The lending period, earlier set to end on 31st December 2024, has now been extended until 31st March 2030. The total outlay for the scheme has been fixed at ₹7,332 crore.

Enhanced Loan Amounts
Under the restructured scheme, the loan limits have been revised. The first tranche loan has been increased from ₹10,000 to ₹15,000, while the second tranche has been enhanced from ₹20,000 to ₹25,000. The third tranche remains unchanged at ₹50,000.

UPI-linked RuPay Credit Card and Digital Incentives
Beneficiaries who successfully repay the second loan will be provided with a UPI-linked RuPay Credit Card to facilitate quick access to credit for both business and personal needs. To encourage digital adoption, street vendors will also receive cashback incentives of up to ₹1,600 on retail and wholesale transactions.

Expansion of Coverage
The scheme’s coverage is being widened beyond statutory towns to include census towns and peri-urban areas in a graded manner. This is expected to significantly increase the reach and impact of the scheme.

Implementation

Implementation of the scheme would be the joint responsibility of Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS), with DFS being responsible for facilitating access to loan/ credit cards through banks/financial institution and their ground level functionaries.

Beneficiaries and Impact
The restructured scheme aims to benefit 1.15 crore street vendors, including 50 lakh new entrants. Since its launch on 1st June 2020 during the COVID-19 pandemic, the scheme has provided crucial support to street vendors. As of July 2025, over 96 lakh loans worth ₹13,797 crore have been disbursed to more than 68 lakh beneficiaries.

(Source: PIB)