Key Points

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

The key features of the restructured scheme include enhanced loan amounts across the first and second tranches, provision of UPI-linked RuPay Credit Card for beneficiaries who have repaid the second loan, and digital cashback incentives for retail and wholesale transactions. The scheme’s coverage is being expanded beyond statutory towns to census towns, peri-urban areas, etc., in a graded manner, the statement said.

The enhanced loan structure includes first tranche loans increased up to Rs 15,000 (from Rs 10,000) and second tranche loans increased up to Rs 25,000 (from Rs 20,000), while the third tranche remains unchanged at Rs 50,000.

The introduction of UPI-linked RUPAY Credit Card would provide immediate access to credit to the street vendors in order to meet any emergent business and personal requirements.

Further, in order to give a boost to digital adoption, the street vendors can avail cashback incentives up to Rs 1,600 on making retail and wholesale transactions.

The scheme also focuses on building the capacity of the street vendors with a focus on entrepreneurship, financial literacy, digital skills, and marketing through convergence. Standard hygiene and food safety training would be conducted for street food vendors, in partnership with the FSSAI.

In order to ensure holistic welfare and development of street vendors and their families, the ‘SVANidhi se Samriddhi’ component will be further strengthened through monthly Lok Kalyan Melas. The intent is to ensure that benefits under various GoI schemes reach the beneficiaries and their families in a saturation approach.

The government had initially launched the PM SVANidhi Scheme on June 1, 2020, to support street vendors who faced unprecedented hardships during the Covid-19 pandemic. However, since the inception of the scheme, it has proved to be more than financial support for street vendors and has given them a sense of identity & formal recognition for their contribution to the economy.

The celebrated PM SVANidhi scheme has already achieved significant milestones. As of July 30, 2025, over 96 lakh loans amounting to Rs 13,797 crore have been disbursed to more than 68 lakh street vendors. Nearly 47 lakh digitally active beneficiaries have conducted over 557 crore digital transactions worth Rs 6.09 lakh crore, earning a total cashback of Rs 241 crore. Under the ‘SVANidhi se Samriddhi’ initiative, 46 lakh beneficiaries across 3,564 Urban Local Bodies (ULBs) have been profiled, leading to over 1.38 crore scheme sanctions.

The scheme has received national recognition, winning the Prime Minister’s Award for Excellence in Public Administration (2023) for Innovation (Central Level) for its outstanding contribution to boosting the economy, promoting livelihoods, advancing financial inclusion, and driving digital empowerment and the Silver Award for Excellence in Government Process Re-engineering for Digital Transformation (2022).

The extension of the scheme envisages the holistic development of street vendors by offering a reliable source of finance to support business expansion and opportunities for sustainable growth. This will not only empower street vendors but will also foster inclusive economic growth, socio-economic upliftment of street vendors and their families, enhancing their livelihoods, and ultimately transforming urban spaces into a vibrant, self-sustaining ecosystem, the statement added.

- IANS