The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme, launched on June 1, 2020, has been a cornerstone of India’s efforts to empower street vendors, a vital yet often overlooked segment of the urban informal economy. Initially introduced as a response to the economic hardships faced by street vendors during the COVID-19 pandemic, the scheme has evolved into a robust framework for financial inclusion, digital empowerment, and socio-economic upliftment. In August 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the restructuring and extension of the PM SVANidhi Scheme, now referred to as PM SVANidhi 2.0, extending its lending period until March 31, 2030, with a total financial outlay of ₹7,332 crore. This article delves into the new updates, benefits, and implications of the extended PM SVANidhi 2.0 Yojana, highlighting its transformative potential for India’s street vendors.
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Background of PM SVANidhi Scheme
The PM SVANidhi Scheme was launched under the Atmanirbhar Bharat Abhiyan to provide collateral-free working capital loans to street vendors whose livelihoods were severely disrupted by the COVID-19 lockdowns. Street vendors, who form an integral part of India’s urban economy, often operate in the informal sector with limited access to formal credit systems. The scheme aimed to bridge this gap by offering affordable loans, promoting digital transactions, and fostering financial inclusion.
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| PM SVANidhi 2.0 Yojana |
Since its inception, the scheme has achieved remarkable milestones. As of July 30, 2025, over 96 lakh loans worth ₹13,797 crore have been disbursed to more than 68 lakh street vendors across the country. Additionally, nearly 47 lakh beneficiaries have embraced digital payments, conducting over 557 crore transactions worth ₹6.09 lakh crore, earning a cumulative cashback of ₹241 crore. The scheme’s SVANidhi se Samriddhi component has profiled 46 lakh beneficiaries across 3,564 Urban Local Bodies (ULBs), leading to over 1.38 crore sanctions under various government welfare schemes. The initiative has been lauded for its impact, receiving the Prime Minister’s Award for Excellence in Public Administration (2023) and the Silver Award for Excellence in Government Process Re-engineering for Digital Transformation (2022).
The success of the original scheme has paved the way for its revamped version, PM SVANidhi 2.0, which introduces enhanced features, increased loan amounts, and a broader scope to support 1.15 crore street vendors, including 50 lakh new beneficiaries, by 2030.
Namo Shetkari Mahasanman Nidhi Yojana
PM SVANidhi 2.0 Yojana Highlights
| Highlight | Details |
|---|---|
| Scheme Name | PM SVANidhi 2.0 Yojana |
| Extension | Lending period extended until March 31, 2030 |
| Financial Outlay | ₹7,332 crore |
| Target Beneficiaries | 1.15 crore street vendors, including 50 lakh new beneficiaries |
| Loan Amounts | First: ₹15,000; Second: ₹25,000; Third: ₹50,000 (collateral-free) |
| Interest Subsidy | 7% for timely repayments |
| UPI-Linked Credit Card | Up to ₹30,000 for vendors repaying second loan on time |
| Digital Cashback | Up to ₹1,600 on digital transactions |
| Expanded Coverage | Includes census towns and peri-urban areas |
| Training Programs | Entrepreneurship, financial literacy, digital skills, and FSSAI food safety training |
| SVANidhi se Samriddhi | Links vendors to welfare schemes via monthly Lok Kalyan Melas |
| Implementation | Jointly by MoHUA and DFS |
| Application Portal | pmsvanidhi.mohua.gov.in |
| Helpline | 1800 11 1979 (available in 8 languages) |
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Key Updates in PM SVANidhi 2.0 Yojana 2025
The restructured PM SVANidhi 2.0 Yojana introduces several significant updates to make the scheme more inclusive, accessible, and impactful. These updates address the evolving needs of street vendors and align with the government’s vision of a digitally empowered and self-reliant India. Below are the key changes:
Extension of Lending Period Until 2030
The Union Cabinet has extended the lending period of the PM SVANidhi Scheme from its earlier deadline of December 31, 2024, to March 31, 2030. This extension ensures that street vendors have sustained access to financial support over the next five years, allowing them to recover, grow, and thrive in a post-pandemic economy. The total financial outlay for this period is set at ₹7,332 crore, underscoring the government’s commitment to empowering the informal sector.
Enhanced Loan Amounts
One of the most significant updates in PM SVANidhi 2.0 is the increase in loan amounts for the first and second tranches:
- First Tranche: The loan limit has been raised from ₹10,000 to ₹15,000.
- Second Tranche: The loan limit has been increased from ₹20,000 to ₹25,000.
- Third Tranche: The loan limit remains unchanged at ₹50,000.
These enhanced loan amounts provide street vendors with greater working capital to expand their businesses, purchase inventory, or invest in better infrastructure, such as carts or stalls. The loans remain collateral-free, with a 7% interest subsidy for timely repayments, making them highly accessible to vendors who often lack traditional collateral.
Introduction of UPI-Linked RuPay Credit Cards
A groundbreaking feature of PM SVANidhi 2.0 is the provision of UPI-linked RuPay credit cards for beneficiaries who have repaid their second loan on time. These credit cards, with a credit limit of up to ₹30,000, are designed to meet the emergency business and personal needs of street vendors. This initiative not only enhances their access to formal credit but also integrates them into the digital financial ecosystem, enabling seamless transactions and financial flexibility.
Digital Cashback Incentives
To promote digital adoption, PM SVANidhi 2.0 offers cashback incentives of up to ₹1,600 on retail and wholesale transactions conducted through digital payment methods. This is a reduction in per-transaction cashback compared to the earlier structure but allows for a higher overall monthly cashback limit. This change encourages vendors to embrace digital payments, aligning with India’s push for a cashless economy and reducing their reliance on cash-based transactions.
Government under PM @NarendraModi ji's leadership has approved the following decisions today:
— Piyush Goyal Office (@PiyushGoyalOffc) August 27, 2025
1️⃣ Restructuring & extension of the lending period beyond 31.12.2024 of the PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme. The focus has been on enhanced credit, UPI-linked… pic.twitter.com/3X9RRvWWwV
Expanded Coverage
The scheme’s coverage is being expanded beyond statutory towns to include census towns and peri-urban areas in a phased manner. This ensures that street vendors in semi-urban and emerging urban areas also benefit from the scheme, broadening its reach and impact.
Capacity-Building Initiatives
PM SVANidhi 2.0 goes beyond financial assistance by focusing on the holistic development of street vendors. The scheme includes:
- Training Programs: Vendors will receive training in entrepreneurship, financial literacy, digital skills, and marketing to enhance their business acumen and operational efficiency.
- Food Safety and Hygiene Training: In collaboration with the Food Safety and Standards Authority of India (FSSAI), street food vendors will undergo training on standard hygiene and food safety practices, ensuring better quality and safety for consumers.
- Monthly Lok Kalyan Melas: The SVANidhi se Samriddhi component will be strengthened through monthly Lok Kalyan Melas, which aim to link street vendors and their families to various government welfare schemes in a saturation approach, ensuring comprehensive socio-economic empowerment.
Joint Implementation
The implementation of PM SVANidhi 2.0 will be a collaborative effort between the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS). The DFS will play a crucial role in facilitating access to loans and credit cards through banks, financial institutions, and their ground-level functionaries, ensuring smooth delivery of benefits.
Pradhan Mantri Shram Yogi Maandhan Scheme
Benefits of PM SVANidhi 2.0 Yojana
The revamped PM SVANidhi 2.0 Yojana offers a wide range of benefits that address the financial, digital, and socio-economic needs of street vendors. These benefits are designed to empower vendors, integrate them into the formal economy, and enhance their livelihoods. Key benefits include:
Financial Empowerment
- Increased Loan Amounts: The enhanced loan limits (₹15,000, ₹25,000, and ₹50,000) provide vendors with greater capital to scale their businesses, purchase raw materials, or invest in infrastructure.
- Collateral-Free Loans: The absence of collateral requirements makes the loans accessible to vendors who lack assets to pledge.
- Interest Subsidy: A 7% interest subsidy on timely repayments reduces the financial burden on vendors, encouraging responsible borrowing and repayment.
- UPI-Linked Credit Cards: The provision of RuPay credit cards with a ₹30,000 limit offers vendors a safety net for emergency expenses, fostering financial resilience.
Digital Inclusion
- Cashback Incentives: The ₹1,600 cashback on digital transactions incentivizes vendors to adopt digital payment methods, aligning with India’s digital economy goals.
- Digital Literacy Training: Training in digital skills equips vendors to use mobile banking, UPI, and other digital tools, reducing their dependence on cash and enhancing their integration into the formal financial system.
- Digital Transactions: The scheme’s emphasis on digital payments has already resulted in over 557 crore transactions worth ₹6.09 lakh crore, demonstrating its success in promoting a cashless economy.
Socio-Economic Upliftment
- SVANidhi se Samriddhi: The initiative has profiled 46 lakh beneficiaries and facilitated over 1.38 crore sanctions under other government schemes, ensuring access to health, insurance, and other welfare benefits for vendors and their families.
- Training and Skill Development: Entrepreneurship, financial literacy, and marketing training empower vendors to manage their businesses more effectively, while FSSAI training enhances the quality and safety of street food.
- Recognition and Identity: The scheme provides vendors with a sense of formal recognition and identity, acknowledging their contribution to the urban economy and integrating them into the mainstream financial system.
Expanded Reach
- The inclusion of census towns and peri-urban areas ensures that vendors in emerging urban centers benefit from the scheme, promoting equitable development.
- The target of reaching 1.15 crore beneficiaries, including 50 lakh new entrants, reflects the scheme’s ambition to scale its impact and support a larger segment of the informal sector.
Economic Resilience
- By providing affordable credit and capacity-building support, PM SVANidhi 2.0 helps vendors recover from economic shocks, such as those experienced during the COVID-19 pandemic, and build sustainable businesses.
- The scheme’s focus on digital adoption and financial inclusion reduces vendors’ reliance on high-interest informal loans, fostering long-term financial stability.
Impact and Achievements of PM SVANidhi
The PM SVANidhi Scheme has already made a significant impact on the lives of street vendors and the urban informal economy. Key achievements include:
- Financial Inclusion: Over 68 lakh street vendors have accessed formal credit, reducing their dependence on exploitative moneylenders.
- Digital Empowerment: Nearly 47 lakh vendors have adopted digital payments, contributing to over 557 crore transactions and earning ₹241 crore in cashback.
- Socio-Economic Development: The SVANidhi se Samriddhi initiative has connected 46 lakh beneficiaries to other government schemes, improving their access to healthcare, insurance, and social security.
- National Recognition: The scheme’s innovative approach has earned it prestigious awards, including the Prime Minister’s Award for Excellence in Public Administration (2023) and the Silver Award for Digital Transformation (2022).
These achievements underscore the scheme’s transformative potential and set the stage for PM SVANidhi 2.0 to build on this success.
Eligibility and Application Process
To avail the benefits of PM SVANidhi 2.0, street vendors must meet the following eligibility criteria:
- Occupation: The applicant must be a street vendor engaged in vending in urban areas for at least one year.
- Location: The scheme is available in states and Union Territories that have notified rules under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Vendors from Meghalaya, which has its own Street Vendors Act, are also eligible.
- Documentation: Applicants must provide identification documents and proof of vending activity, often facilitated through digital ID cards issued under the scheme.
Application Process
- Visit the Official Website: Vendors can apply through the official PM SVANidhi portal (pmsvanidhi.mohua.gov.in).
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- Select Loan Option: Choose the desired loan tranche (₹15,000, ₹25,000, or ₹50,000) or apply for a UPI-linked credit card.
- Submit Details: Enter personal and business details and upload necessary documents.
- Review and Submit: Verify the information and submit the application for processing.
- Track Application: Use the “Know Your Application Status” feature on the portal to monitor progress.
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- For assistance, vendors can contact the toll-free helpline 1800 11 1979 (available in eight languages) or reach out to local Urban Local Bodies (ULBs) or financial institutions.
Challenges and the Way Forward
While PM SVANidhi 2.0 is a promising initiative, it faces certain challenges:
- Awareness: Many street vendors, especially in peri-urban areas, may lack awareness of the scheme or the application process.
- Digital Literacy: Despite training programs, some vendors may struggle to adopt digital payment systems due to limited technological know-how.
- Implementation: Ensuring seamless coordination between MoHUA, DFS, banks, and ULBs is critical for effective delivery of benefits.
- Loan Repayment: Encouraging timely repayments remains essential to sustain the scheme’s revolving credit model.
To address these challenges, the government can:
- Launch awareness campaigns in local languages to reach remote vendors.
- Strengthen digital literacy programs with hands-on training and support.
- Streamline coordination among stakeholders to ensure efficient loan disbursement and credit card issuance.
- Monitor repayment trends and offer additional incentives for timely repayments.
Conclusion
The PM SVANidhi 2.0 Yojana 2025 represents a significant step forward in empowering India’s street vendors, who are the backbone of the urban informal economy. With its extended timeline until 2030, enhanced loan amounts, UPI-linked credit cards, digital cashback incentives, and capacity-building initiatives, the scheme is poised to transform the lives of 1.15 crore street vendors, including 50 lakh new beneficiaries. By fostering financial inclusion, digital empowerment, and socio-economic development, PM SVANidhi 2.0 aligns with the vision of a Viksit Bharat (Developed India). As the scheme continues to evolve, it holds the promise of not only providing financial relief but also giving street vendors the tools and opportunities to thrive in an increasingly digital and competitive economy.
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FAQs: PM SVANidhi 2.0 Yojana 2025
Q. What is PM SVANidhi 2.0 Yojana?
The PM SVANidhi 2.0 Yojana is an enhanced version of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi Scheme, initially launched in 2020 to support street vendors affected by the COVID-19 pandemic. Extended until March 31, 2030, with a financial outlay of ₹7,332 crore, it offers collateral-free loans, UPI-linked RuPay credit cards, digital cashback incentives, and capacity-building programs to empower 1.15 crore street vendors, including 50 lakh new beneficiaries, by promoting financial inclusion and digital adoption.
Q. What are the new updates in PM SVANidhi 2.0 for 2025?
PM SVANidhi 2.0 introduces several updates, including an extension of the lending period until March 2030, increased loan amounts (₹15,000 for the first tranche, ₹25,000 for the second, and ₹50,000 for the third), and the introduction of UPI-linked RuPay credit cards with a ₹30,000 limit for eligible vendors. It also offers up to ₹1,600 in digital cashback, expands coverage to census towns and peri-urban areas, and includes training in entrepreneurship, financial literacy, and food safety.
Q. Who is eligible to apply for PM SVANidhi 2.0?
Street vendors engaged in vending in urban areas for at least one year are eligible to apply. The scheme applies in states and Union Territories that have notified rules under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, including Meghalaya, which has its own Street Vendors Act. Applicants need to provide identification documents and proof of vending activity, often facilitated through digital ID cards issued under the scheme.
Q. What are the loan amounts available under PM SVANidhi 2.0?
The scheme offers three tranches of collateral-free loans: ₹15,000 for the first loan (increased from ₹10,000), ₹25,000 for the second loan (increased from ₹20,000), and ₹50,000 for the third loan. These loans come with a 7% interest subsidy for timely repayments, making them affordable for street vendors to expand their businesses or meet working capital needs.
Q. What is the UPI-linked RuPay credit card feature?
Vendors who repay their second loan on time are eligible for a UPI-linked RuPay credit card with a credit limit of up to ₹30,000. This feature provides financial flexibility for emergency business or personal expenses, integrates vendors into the digital financial ecosystem, and supports seamless transactions, aligning with India’s push for a cashless economy.
Q. How does the digital cashback incentive work?
PM SVANidhi 2.0 offers a cashback of up to ₹1,600 on retail and wholesale transactions conducted through digital payment methods like UPI. While the per-transaction cashback is lower than the original scheme, the higher monthly limit encourages vendors to adopt digital payments, reducing reliance on cash and promoting financial inclusion.
Q. How can street vendors apply for PM SVANidhi 2.0?
Vendors can apply through the official PM SVANidhi portal (pmsvanidhi.mohua.gov.in) by selecting the desired loan tranche or credit card option, entering personal and business details, and uploading required documents. After submission, they can track their application status on the portal. For assistance, vendors can contact the toll-free helpline 1800 11 1979 or reach out to local Urban Local Bodies (ULBs).
Q. What is the SVANidhi se Samriddhi component?
The SVANidhi se Samriddhi component profiles street vendors and their families to connect them with other government welfare schemes, such as health insurance and social security programs. As of July 2025, it has profiled 46 lakh beneficiaries across 3,564 ULBs, leading to over 1.38 crore sanctions. Monthly Lok Kalyan Melas will further strengthen this initiative under PM SVANidhi 2.0
Q. What kind of training is provided under PM SVANidhi 2.0?
The scheme offers training in entrepreneurship, financial literacy, digital skills, and marketing to enhance vendors’ business acumen. Additionally, in collaboration with the Food Safety and Standards Authority of India (FSSAI), street food vendors receive training on food safety and hygiene practices to ensure better quality and safety for consumers.
Q. Which areas are covered under PM SVANidhi 2.0?
While the original scheme focused on statutory towns, PM SVANidhi 2.0 expands coverage to include census towns and peri-urban areas in a phased manner. This ensures that street vendors in semi-urban and emerging urban areas also benefit, promoting equitable access to financial and socio-economic support.
Q. What are the benefits of PM SVANidhi 2.0 for street vendors?
The scheme provides multiple benefits, including increased loan amounts, collateral-free credit, a 7% interest subsidy, UPI-linked credit cards, and digital cashback incentives. It also offers training in entrepreneurship and food safety, connects vendors to welfare schemes via SVANidhi se Samriddhi, and fosters digital and financial inclusion, empowering vendors to grow their businesses and achieve economic stability.
Q. What is the financial outlay and target of PM SVANidhi 2.0?
The scheme has a financial outlay of ₹7,332 crore and aims to support 1.15 crore street vendors, including 50 lakh new beneficiaries, by March 31, 2030. This ambitious target reflects the government’s commitment to empowering the informal sector and integrating street vendors into the formal economy.
Q. Can vendors from rural areas apply for PM SVANidhi 2.0?
The scheme primarily targets urban and peri-urban street vendors, including those in statutory and census towns. Rural vendors are not eligible unless they operate in areas classified as peri-urban under the scheme’s expanded coverage. Vendors should check with local ULBs to confirm eligibility.
Q. How does PM SVANidhi 2.0 support food vendors specifically?
Food vendors benefit from increased loan amounts, digital payment incentives, and UPI-linked credit cards. Additionally, they receive specialized training on food safety and hygiene in collaboration with FSSAI, ensuring compliance with standards and improving the quality and safety of their offerings.