Key Points

As per a press release by the Cabinet, the move comes with a total financial outlay of Rs. 7,332 crore and is expected to benefit around 1.15 crore street vendors, including 50 lakh new beneficiaries.

Implementation of the scheme would be the joint responsibility of the Ministry of Housing & Urban Affairs (MoHUA) and the Department of Financial Services (DFS), with DFS being responsible for facilitating access to loans/ credit cards through banks/financial institutions, as well as their ground-level functionaries.

Under the restructured scheme, the loan slabs have been revised. The first tranche loan has been increased to Rs. 15,000 from the earlier Rs. 10,000, and the second tranche enhanced to Rs. 25,000 from Rs. 20,000, while the third tranche remains unchanged at Rs. 50,000.

A UPI-linked RuPay Credit Card will be introduced for vendors who successfully repay their second loan, giving them quick access to credit for both personal and business needs.

In addition, to encourage digital adoption, street vendors will now be able to earn cashback incentives of up to Rs. 1,600 for retail and wholesale transactions carried out digitally. The coverage of the scheme is also being expanded beyond statutory towns to include census towns and "peri-urban" areas in a phased manner.

Capacity-building measures form another important part of the restructured scheme. Street vendors will receive training in entrepreneurship, financial literacy, digital skills, and marketing. For those in the food business, standard hygiene and food safety training will be offered in collaboration with the Food Safety and Standards Authority of India (FSSAI).

The Cabinet release further stated that the 'SVANidhi se Samriddhi' component would be reinforced through monthly Lok Kalyan Melas. These events are designed to ensure that street vendors and their families are linked to multiple government welfare schemes in a saturation mode.

Since its inception, the PM SVANidhi scheme has already made a considerable impact. As of July 30, 2025, more than 96 lakh loans worth Rs. 13,797 crore had been disbursed to 68 lakh street vendors.

Nearly 47 lakh digitally active vendors have together carried out 557 crore digital transactions valued at Rs. 6.09 lakh crore, earning cashback worth Rs. 241 crore.

Additionally, 46 lakh beneficiaries across 3,564 urban local bodies have been profiled under the 'SVANidhi se Samriddhi' initiative, leading to over 1.38 crore sanctions under other government schemes.

The scheme has also won national recognition, including the Prime Minister's Award for Excellence in Public Administration in 2023 and the Silver Award for Excellence in Government Process Re-engineering for Digital Transformation in 2022.

- ANI