PM SVANidhi Scheme

• Context (IE): The Union Cabinet has extended the PM SVANidhi (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) scheme until March 31, 2030.

About SVANidhi Scheme

• PM SVANidhi is a Central Sector micro-credit scheme. It was launched in 2020 as part of the government’s economic package during the pandemic for street vendors.
• Objective: To provide working capital loans to street vendors, incentivise timely repayment, and promote digital transactions.
• Nodal Ministry: Jointly managed by the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS).
• Implemented by: Small Industries Development Bank of India (SIDBI).
• Coverage: The scheme’s coverage is being expanded beyond statutory towns to include census towns and peri-urban areas, in a phased manner.
• Collateral free loans: The scheme provides collateral-free loans up to Rs 50,000 for eligible street vendors in incremental tranches (₹15,000 for the first, ₹25,000 for 2nd and ₹50,000 for the last). 
• RuPay UPI-Linked Credit Cards: Vendors who repay their second loan on time will now be eligible for a UPI-linked RuPay credit card, offering instant credit access for both business and personal use.
• Digital Cashback Incentives: To encourage digital adoption, vendors will receive cashback benefits up to ₹1,600 for retail and wholesale transactions made via digital payments.
• Capacity building: The revamped scheme also includes comprehensive support through training in financial literacy, digital skills, entrepreneurship, and for street food vendors, hygiene and food-safety training in collaboration with FSSAI.
• Impact: PM SVANidhi has helped promote inclusive entrepreneurship and proven to be a gender equaliser.
  • As of July 30, 2025, over 96 lakh loans have been disbursed, totaling ₹13,797 crore, benefiting more than 68 lakh street vendors.