PM SVANidhi Scheme Gets 5-Year Extension, Aims To Benefit 1.15 Cr Street Vendors

New Delhi, Aug 27 (KNN) The Union Cabinet has approved a five-year extension and restructuring of the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme, extending the lending period until March 31, 2030. 

The decision, announced by the Cabinet chaired by Prime Minister Narendra Modi on Tuesday, allocates Rs 7,332 crore for the expanded program targeting 1.15 crore beneficiaries, including 50 lakh new participants.

The restructured scheme introduces several enhancements to support India's street vendor community. 

First and second tranche loan amounts have been increased, with initial loans rising from Rs 10,000 to Rs 15,000 and second loans from Rs 20,000 to Rs 25,000. Third tranche loans remain capped at Rs 50,000.

Additionally, beneficiaries who repay their second loans will receive UPI-linked RuPay credit cards for immediate access to emergency business and personal credit.

The program will expand beyond statutory towns to include census towns and peri-urban areas in phases. 

Digital adoption incentives include cashback rewards up to Rs 1,600 for retail and wholesale transactions conducted by participating vendors.

Implementation responsibility will be shared between the Ministry of Housing and Urban Affairs and the Department of Financial Services, with the latter facilitating loan access through banks and financial institutions.

The scheme will also strengthen capacity-building initiatives focusing on entrepreneurship, financial literacy, digital skills, and marketing. Food safety training will be conducted in partnership with the Food Safety and Standards Authority of India.

The 'SVANidhi se Samriddhi' component aims to ensure comprehensive welfare coverage for vendors and their families through monthly community outreach programs designed to connect beneficiaries with various government schemes.

Since its launch in June 2020 during the COVID-19 pandemic, PM SVANidhi has disbursed over 96 lakh loans totaling Rs 13,797 crore to more than 68 lakh street vendors as of July 2025. 

Government officials stated the extension aims to provide sustainable financing options for business expansion while promoting financial inclusion and digital empowerment among street vendors, contributing to broader urban economic development.

(KNN Bureau)