The Union Cabinet, led by Prime Minister Narendra Modi, has approved the restructuring and extension of the PM SVANidhi scheme until 31 March 2030.
With an outlay of ₹7,332 crore, the upgraded plan aims to expand the reach and impact of one of the government’s flagship financial inclusion initiatives.
Under the revamped scheme:
- The first loan tranche has been raised to ₹15,000
- The second tranche has been increased to ₹25,000
- The third tranche remains at ₹50,000
Street vendors who repay their second loan on time will receive a UPI-linked RuPay credit card, giving them access to credit for business or emergency needs.
Additionally, to promote digital transactions, vendors can earn cashback of up to ₹1,600 for digital payments in retail and wholesale trades.
The scheme now aims to cover 1.15 crore beneficiaries, including 50 lakh new vendors. It will also expand to include census towns and peri-urban areas in addition to statutory towns, in a phased manner.
The Ministry of Housing & Urban Affairs (MoHUA) and the Department of Financial Services (DFS) will oversee implementation.
Skill Development and Hygiene Training
Beyond financial support, the restructured scheme will offer training in:
- Entrepreneurship
- Digital literacy
- Financial awareness
- Marketing skills
In collaboration with the Food Safety and Standards Authority of India (FSSAI), vendors in the food business will also receive training in hygiene and food safety standards.
Since its launch in June 2020, PM SVANidhi has:
- Disbursed over 96 lakh loans worth ₹13,797 crore
- Benefitted 68 lakh street vendors
- Facilitated 557 crore digital transactions worth ₹6.09 lakh crore
- Generated ₹241 crore in cashback rewards
Nearly 47 lakh beneficiaries are now digitally active, showcasing the scheme’s impact on bridging the digital divide for urban informal workers.
The Cabinet reaffirmed that the extended PM SVANidhi scheme will support economic resilience among India’s most vulnerable traders and contribute to building more inclusive and self-reliant urban economies.
The focus remains on empowering street vendors through credit access, skill building, and integration into the formal economy.
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