PM SVANidhi Yojana offers street vendors collateral-free loans up to ₹90,000. The scheme is extended till March 2030, benefiting over 1.15 crore people.
The Central Government has extended the Pradhan Mantri Street Vendors’ Atmanirbhar Nidhi (PM SVANidhi Yojana) till March 31, 2030, providing a huge relief to millions of street vendors across India. Launched on June 1, 2020, the scheme is designed to provide collateral-free loans to small vendors, hawkers, and shopkeepers to help them rebuild and expand their businesses.
So far, more than 68 lakh beneficiaries including fruit and vegetable sellers, laundry owners, salon workers, and pan shop vendors have received financial assistance under this program. With the extension, the government expects to support 1.15 crore people, including 50 lakh new beneficiaries. For this purpose, the government will spend nearly ₹7,332 crore.
What is PM SVANidhi Yojana?
The PM SVANidhi Yojana is a micro-credit government scheme aimed at providing small loans to street vendors. The biggest advantage of this program is that no collateral or guarantee is required.
Initially, the loan limit was ₹80,000, but now the amount has been increased. Beneficiaries can now avail loans of up to ₹90,000 in three phases:
- First installment: ₹15,000 (earlier it was ₹10,000)
- Second installment: ₹25,000 (earlier it was ₹20,000)
- Third installment: ₹50,000 (unchanged)
This step-by-step approach ensures that vendors can start small and gradually expand their businesses while building credibility with timely repayments.
Digital Push and RuPay Credit Card
To encourage digital transactions, the government has introduced a UPI-linked RuPay credit card facility. Beneficiaries who repay their loans on time will get access to this credit card, making it easier for them to manage their finances and access quick funds for both business and personal needs.
Additionally, vendors will now receive cashback incentives of up to ₹1,600 on wholesale and retail transactions made through digital payments. This move not only helps vendors adopt cashless systems but also promotes transparency and financial inclusion.
Who Can Provide Loans Under the Scheme?
Loans under the PM SVANidhi Yojana are being disbursed by multiple financial institutions across the country. These include:
- Scheduled Commercial Banks
- Regional Rural Banks
- Small Finance Banks
- Cooperative Banks
- Non-Banking Financial Companies (NBFCs)
- Micro Finance Institutions (MFIs)
- Self-Help Group (SHG) Banks
The scheme is implemented by the Small Industries Development Bank of India (SIDBI). Beneficiaries can also apply for loans through the Common Service Centres (CSCs) spread across India.
Documents Required for Loan Application
To avail benefits under the PM SVANidhi Yojana, beneficiaries must provide KYC documents. The mandatory documents include:
- Aadhaar Card
- Voter ID Card
Other accepted documents include:
- Driving License
- MGNREGA Card
- PAN Card
These documents help vendors prove their identity and eligibility for the loan scheme.
Training and Awareness Programs
Apart from providing loans, the government is also conducting training and awareness camps to educate vendors about the scheme and digital transactions.
For instance, in Prayagraj (Uttar Pradesh), street food vendors received training during the Lok Kalyan Mela organized by the Municipal Corporation. Similarly, in Mainpuri (UP), a Lok Kalyan Mela has been launched to spread awareness about the scheme.
Interestingly, these events are also being held as part of the celebrations for Prime Minister Narendra Modi’s birthday and will continue till October 2.
Why is PM SVANidhi Yojana Important?
Street vendors form an essential part of India’s urban economy. They not only provide affordable goods and services but also support local communities. However, due to lack of access to formal credit, most of them depend on private moneylenders who charge high interest rates.
The PM SVANidhi Yojana offers them a chance to access low-interest, collateral-free loans directly from banks. With timely repayment, they can build their credit history and become eligible for bigger financial opportunities in the future.
Key Benefits at a Glance
- Collateral-free loans up to ₹90,000
- Extended till March 2030
- 1.15 crore beneficiaries targeted
- ₹7,332 crore government budget
- RuPay credit card facility for timely payers
- Digital cashback up to ₹1,600
- Loans available from multiple financial institutions
- Simple KYC process with Aadhaar and Voter ID
Also read: Loan News: Big Relief from Finance Ministry – Now You Can Get Loan Even Without CIBIL Score
Conclusion
The PM SVANidhi Yojana is more than just a financial assistance program—it is a step towards empowering India’s street vendors and small shopkeepers. By extending the scheme till 2030, the government has ensured long-term stability for millions of families who depend on street vending for their livelihood.
With digital payment benefits, RuPay card access, and increased loan limits, the scheme not only provides immediate financial relief but also prepares vendors for a more secure, cashless, and sustainable future.
