Cabinet extends PM SVANidhi Scheme till 2030, approves Rs 7,332 crore outlay

In a major boost for urban street vendors, the Union Cabinet on Tuesday approved the restructuring and extension of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme beyond its earlier deadline of December 31, 2024. The scheme will now run until March 31, 2030 with a total financial outlay of ₹7,332 crore, aiming to support 1.15 crore beneficiaries, including 50 lakh new entrants.

The decision, chaired by Prime Minister Narendra Modi, comes as part of the government’s broader push to enhance financial inclusion, digital adoption, and socio-economic empowerment of street vendors across the country.

Expanded Loan Structure

Under the restructured framework, street vendors will have access to enhanced loans. The first tranche loan has been increased to Rs 15,000 (earlier Rs 10,000), and the second tranche to Rs 25,000 (earlier Rs 20,000), while the third tranche remains unchanged at Rs 50,000.

Beneficiaries who successfully repay the second loan will also be eligible for a UPI-linked RuPay Credit Card, providing them with immediate access to credit for both business and personal needs.

To promote digital adoption, the government has also introduced cashback incentives of up to ₹1,600 for street vendors who carry out retail and wholesale transactions digitally.

Component                          Details

Total Outlay (2025–2030)    ₹7,332 crore

Target Beneficiaries    1.15 crore street vendors

New Beneficiaries (included in above)    50 lakh

Loan Tranche 1 (enhanced)    Up to ₹15,000 (earlier ₹10,000)

Loan Tranche 2 (enhanced)    Up to ₹25,000 (earlier ₹20,000)

Loan Tranche 3    ₹50,000 (unchanged)

Digital Incentives    Cashback up to ₹1,600 per vendor

Credit Facility    UPI-linked RuPay Credit Card post repayment of 2nd loan

Wider coverage

While the scheme initially covered statutory towns, its scope will now expand to include census towns, peri-urban areas, and other identified zones in a phased manner.

Beyond financial support, the restructured plan places strong emphasis on entrepreneurship training, financial literacy, digital skills, and marketing support. In partnership with the Food Safety and Standards Authority of India (FSSAI), dedicated hygiene and food safety training sessions will also be provided for street food vendors.

Welfare beyond credit

The ‘SVANidhi se Samriddhi’ component, aimed at ensuring holistic welfare for vendors and their families, will be further strengthened. Monthly Lok Kalyan Melas will be organized to help street vendors access various government welfare schemes through a saturation approach, ensuring benefits reach all eligible households.

Background

Launched on June 1, 2020, in the wake of the COVID-19 pandemic, PM SVANidhi was designed to provide collateral-free working capital loans to street vendors who had suffered severe economic setbacks.

Since its inception, the scheme has gone far beyond its original purpose. As of July 30, 2025, more than 96 lakh loans worth ₹13,797 crore have been disbursed to 68 lakh street vendors. Nearly 47 lakh beneficiaries have adopted digital payments, conducting over 557 crore transactions worth ₹6.09 lakh crore, and earning ₹241 crore in cashback rewards.

The welfare component has also made significant strides, profiling 46 lakh beneficiaries across 3,564 Urban Local Bodies (ULBs) and enabling 1.38 crore scheme sanctions under various government initiatives.