PM Street Vendors AtmaNirbhar Nidhi Scheme

PM Street Vendors AtmaNirbhar Nidhi Scheme

Why in News? 

The government has recently announced that the lending period of PM SVANidhi Scheme will now continue beyond its earlier deadline. The new deadline will now continue till March 31, 2030 to give street vendors more time and support to strengthen their livelihoods and ensure financial security.

What is PM Street Vendors AtmaNirbhar Nidhi Scheme?

• About: The PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme is a government initiative that provides affordable credit support to street vendors in India. It was launched by the central government on June 1, 2020. The program was designed in the backdrop of the COVID-19 crisis, when millions of small vendors lost their daily income due to lockdowns. The government launched PM SVANidhi as a dedicated scheme to provide them with collateral-free loans.

• Objectives: The scheme has multiple objectives that go beyond loan distribution.

• • • The primary goal is to offer working capital loans up to ₹10,000 in the first tranche so vendors can restart small businesses.
    • It seeks to encourage digital transactions by offering cashback incentives for payments made through UPI or digital wallets.
    • Another objective is to promote credit discipline among vendors, as timely repayment makes them eligible for higher loans in the next cycle.
    • The program also aims to integrate vendors with mainstream financial services, which was not possible earlier due to lack of documentation and formal recognition.

• Agencies: The Ministry of Housing and Urban Affairs (MoHUA) is the nodal ministry responsible for the design and implementation of this scheme. 

• The scheme functions with the active support of State Governments, Urban Local Bodies, and different lending agencies. Banks, Non-Banking Financial Companies (NBFCs), Microfinance Institutions (MFIs), and Self-Help Groups (SHGs) play a central role in loan disbursal. 

• The Small Industries Development Bank of India (SIDBI) acts as a technical partner and helps in digital monitoring. 

• Eligibility: 

• • Vendors engaged in street vending within urban areas on or before 24 March 2020 are eligible to apply under the scheme.
  • They are required to show a Vending Certificate or Identity Card issued by the concerned Urban Local Body.
  • Vendors without proper documentation can still apply through provisional certificates issued by the local authority.
  • Migrant vendors are also covered, provided they can prove their vending activity in the city of application.
  • Both permanent and temporary vendors, such as those selling from pushcarts or roadside stalls, are eligible.

Financial Support & Features of PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme

• Financial Support:

• • First Cycle Loan: In the first stage, the vendor can take a working capital loan of up to ₹10,000. The repayment time is 12 months. For this, vendors do not need to keep any asset as security. 

• Second Cycle Loan: When a vendor pays the first loan on time, the scheme rewards them. They become eligible for the second loan of up to ₹20,000. The repayment time is 12 months. This cycle allows vendors to increase stock and improve daily sales. 

• Third Cycle Loan: The scheme has a third stage for vendors who keep a clean repayment record. In this stage, the vendor can take a loan of up to ₹50,000. The repayment time is 12 months. This allows them to expand their vending activities.

• Features:

• Collateral-Free Loans: The scheme provides collateral-free working capital loans. Vendors do not need to mortgage property or assets. This makes the scheme easy to access for poor and vulnerable groups.

• Interest Subsidy Support: Borrowers receive an interest subsidy of 7% per year. The interest subsidy is directly deposited into the vendor’s account through the DBT system, ensuring transparency. 

• Digital Transaction Incentives: The scheme promotes digital payments among vendors. A vendor who uses UPI or digital wallets can earn cashback ranging from ₹50 to ₹100 per month. This helps them adopt technology and reduce dependence on cash.

• Financial Inclusion: The scheme connects street vendors with the formal banking system. It helps them build a credit history which opens the door to larger financial opportunities in the future.

Recent Extension of the Scheme till 2030

• • Approval: The Union Cabinet has cleared the extension and restructuring of PM SVANidhi Scheme for a wider reach.
    • The lending period, which was earlier set to end on December 31, 2024, has now been extended until March 31, 2030. The government has allocated a total outlay of ₹7,332 crore for this extended plan.
  • Coverage: With this restructuring, the program will now cover 1.15 crore vendors, including 50 lakh fresh beneficiaries, and extend to census towns and peri-urban zones as well.

• Agencies: The restructured scheme will be carried out through joint efforts of the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS).

• The DFS will oversee the process of providing loans and credit cards to vendors through banks and other financial institutions.

• MoHUA will continue to guide and monitor implementation with support from states and local bodies.

• Loan Structure: The government has revised the loan amount under different cycles. The first loan limit has been raised to ₹15,000, and the second cycle has been enhanced to ₹25,000, giving vendors higher financial backing. The third tranche remains the same at ₹50,000.
• New Updates:
  • A UPI-enabled RuPay Credit Card has been introduced to provide instant and flexible credit support to vendors. This card will be given to vendors who have successfully repaid the second loan. It will provide them with immediate access to credit for both business and urgent personal needs.
  • Vendors who make transactions through digital platforms can now earn cashback incentives up to ₹1,600. This benefit applies to both retail and wholesale transactions. 
  • Vendors will also receive training on digital skills, entrepreneurship, financial literacy, and marketing, with special sessions on hygiene and food safety for street food sellers in partnership with FSSAI.
  • The ‘SVANidhi se Samriddhi’ initiative is being reinforced with monthly Lok Kalyan Melas to connect vendors and their families with other government welfare schemes.

Achievements of PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme

• Loan Disbursement: By July 30, 2025, the scheme had successfully sanctioned more than 96 lakh loans to street vendors. The total loan value has reached ₹13,797 crore. More than 68 lakh vendors have directly benefited from these loans.

• Digital Transaction: Nearly 47 lakh beneficiaries are now active in digital platforms under the scheme. Beneficiaries have together carried out over 557 crore digital transactions worth ₹6.09 lakh crore. 

• Vendors have also earned a combined cashback of ₹241 crore, which encouraged them to continue digital payments.

• Samriddhi Impact: The ‘SVANidhi se Samriddhi’ component has added further value. By July 2025, around 46 lakh vendors across 3,564 Urban Local Bodies (ULBs) were profiled under this initiative. Through detailed profiling has enabled the sanction of over 1.38 crore additional government benefits to eligible families.

• National Recognition: The scheme has earned strong recognition at the national level. In 2023, it won the Prime Minister’s Award for Excellence in Public Administration in the category of Innovation (Central Level). 

• Earlier, in 2022, it received the Silver Award for Excellence in Government Process Re-engineering for Digital Transformation. 

Other Related Welfare Schemes of Indian Government 

• SAMARTH Scheme
• PM Pranam Scheme
• 11 Years of Garib Kalyan
• Pradhan Mantri Jan-Dhan Yojana (PMJDY)
• Beti Bachao Beti Padhao Scheme (BBBP)