PM SVANidhi scheme extension 2030 approved by Union Cabinet. Learn about enhanced loans, UPI-linked RuPay credit cards, digital incentives, and benefits for street vendors.
Union Cabinet Restructures PM SVANidhi Scheme, Extends Till 2030
Introduction: Extension and Enhancement of PM SVANidhi Scheme
On August 27, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the restructuring and extension of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme. Originally set to conclude on December 31, 2024, the scheme’s duration has been extended until March 31, 2030. The total financial outlay for the restructured scheme is ₹7,332 crore, aiming to benefit approximately 1.15 crore street vendors, including 50 lakh new beneficiaries.
Enhanced Loan Provisions
The restructured PM SVANidhi scheme introduces increased loan limits to provide greater financial support to street vendors:
- First Tranche Loan: Increased from ₹10,000 to ₹15,000.
- Second Tranche Loan: Increased from ₹20,000 to ₹25,000.
- Third Tranche Loan: Remains at ₹50,000.
Introduction of UPI-Linked RuPay Credit Cards
A significant enhancement to the scheme is the provision of UPI-linked RuPay credit cards for beneficiaries who repay their second loan on time. These credit cards aim to facilitate immediate access to emergency business and personal credit, promoting financial inclusion among street vendors.
Digital Incentives for Vendors
To encourage digital transactions, the restructured scheme offers incentives of up to ₹1,600 to vendors who opt for digital payments in both retail and wholesale transactions. This initiative aims to promote a cashless economy and enhance the financial literacy of street vendors.
Expansion of Scheme Coverage
The restructured PM SVANidhi scheme expands its coverage beyond statutory towns to include census towns and peri-urban areas in a graded manner. This expansion ensures that a larger number of street vendors across various regions benefit from the scheme.
Why This News Is Important
Empowerment of Street Vendors
The extension and restructuring of the PM SVANidhi scheme signify the government’s commitment to empowering street vendors, who form a crucial part of the urban informal economy. By providing enhanced financial support and promoting digital transactions, the scheme aims to uplift the livelihoods of street vendors and integrate them into the formal economy.
Support for Urban Informal Economy
Street vendors contribute significantly to urban economies by providing affordable goods and services. The government’s initiative to support these vendors through financial assistance and digital incentives underscores the importance of the informal sector in urban development.
Promotion of Financial Inclusion
The introduction of UPI-linked RuPay credit cards and digital incentives promotes financial inclusion among street vendors, enabling them to access credit facilities and engage in digital transactions. This move aligns with the government’s vision of a cashless and inclusive economy.
Historical Context
Launch of PM SVANidhi Scheme
The PM SVANidhi scheme was launched on June 1, 2020, under the Ministry of Housing and Urban Affairs (MoHUA), as part of the government’s economic package during the COVID-19 pandemic and lockdown. The scheme aimed to provide affordable working capital loans to street vendors to help them revive their livelihoods.
Previous Enhancements
Prior to this restructuring, the scheme had undergone enhancements, including the introduction of interest subsidies and digital incentives, to encourage timely repayment and promote digital transactions among street vendors.
Key Takeaways from ‘Cabinet Restructures PM SVANidhi Scheme’
| S.No | Key Takeaway |
|---|---|
| 1. | PM SVANidhi scheme extended till March 31, 2030, with a ₹7,332 crore outlay. |
| 2. | Loan limits increased: First tranche ₹15,000, Second tranche ₹25,000, Third tranche ₹50,000. |
| 3. | Introduction of UPI-linked RuPay credit cards for timely repayers. |
| 4. | Digital incentives of up to ₹1,600 for vendors opting for digital payments. |
| 5. | Scheme coverage expanded to include census towns and peri-urban areas. |
FAQs: Frequently Asked Questions
1. What is the PM SVANidhi Scheme?
The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is a government initiative to provide affordable working capital loans to street vendors, promoting their financial inclusion and revival of livelihoods.
2. When was the PM SVANidhi scheme launched?
The scheme was launched on June 1, 2020, under the Ministry of Housing and Urban Affairs during the COVID-19 pandemic to support street vendors affected by the lockdown.
3. What is the new duration of the restructured PM SVANidhi scheme?
The Union Cabinet has extended the scheme till March 31, 2030.
4. What are the new loan limits under the restructured scheme?
The first tranche is ₹15,000, the second tranche is ₹25,000, and the third tranche remains ₹50,000.
5. What additional facilities are provided to beneficiaries?
Beneficiaries who repay the second tranche on time can avail UPI-linked RuPay credit cards. The scheme also provides digital incentives of up to ₹1,600 for digital transactions.
6. Who can benefit from the scheme?
Approximately 1.15 crore street vendors, including 50 lakh new beneficiaries, across statutory towns, census towns, and peri-urban areas will benefit from the restructured scheme.
7. How does the scheme promote financial inclusion?
Through UPI-linked credit cards, digital incentives, and access to affordable loans, the scheme encourages street vendors to engage in digital transactions and integrate into the formal economy.
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