Reference:

• The Union Cabinet has approved the restructuring of the Pradhan Mantri Street Vendor AtmaNirbhar Nidhi (PM SVANidhi) scheme and extended the loan disbursement period from 31 December 2024 to 31 March 2030.

Key Points:

• A budgetary provision of ₹7,332 crore has been made for the restructuring, which will benefit 1.15 crore beneficiaries, including 50 lakh new street vendors.

Increase in Loan Limit:

• First installment: Increased from ₹10,000 to ₹15,000
• Second installment: Increased from ₹20,000 to ₹25,000
• Third installment: ₹50,000 (unchanged)

UPI-Linked RuPay Credit Card:

• Beneficiaries who repay the second installment on time will be provided a UPI-linked RuPay credit card.
• This credit card will offer street vendors immediate loans for emergency business and personal needs.
• This facility will help vendors tackle cash flow challenges.

Digital Cashback Incentive:

• The scheme provides street vendors with a cashback incentive of up to ₹1,600 on retail and wholesale transactions to promote digital payments.
• This will encourage their participation in the digital economy and reduce dependence on cash-based transactions.

Geographical Expansion:

• The scheme’s coverage will be gradually extended to towns and semi-urban areas.
• This will allow street vendors in rural and semi-urban areas to also benefit, promoting inclusive development.

Training and Capacity Building:

The restructured scheme emphasizes training for street vendors in the following areas:

• Entrepreneurship: Skill development for business management and expansion
• Financial Literacy: Budget management and financial planning
• Digital Skills: Digital payments and online marketing
• Hygiene and Food Safety: Training on standard hygiene and food safety in collaboration with the Food Safety and Standards Authority of India (FSSAI)

Achievements of the Scheme:

Since its inception, the PM SVANidhi scheme has achieved several significant milestones:

• Loan Distribution: As of 30 July 2025, more than 68 lakh street vendors have received over 96 lakh loans amounting to ₹13,797 crore.
• Digital Transactions: Nearly 47 lakh digitally active beneficiaries conducted over 557 crore digital transactions worth ₹6.09 lakh crore, earning ₹241 crore as cashback.
• Awards: The scheme has received the following awards for its outstanding contribution:
• Prime Minister’s Award for Excellence in Public Administration (2023)
• Silver Award for Digital Transformation (2022)

About PM SVANidhi Scheme:

The Pradhan Mantri Street Vendor AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched by the Government of India on 1 June 2020. Its objective is to provide affordable and collateral-free loans to street vendors and small traders affected by the COVID-19 pandemic, thereby offering economic support. The scheme is implemented by the Ministry of Housing and Urban Affairs (MoHUA).