PM SVANidhi Scheme 2025: Empowering Street Vendors with Loans, Know How to Apply

India’s bustling streets are alive with the vibrant energy of millions of street vendors—men and women who form the backbone of the country’s urban informal economy. From the early morning tea seller to the evening chaat vendor, these micro-entrepreneurs not only provide affordable goods and services but also create a unique urban culture. Yet, for decades, street vendors have faced daily struggles: lack of access to formal credit, vulnerability to eviction, and exclusion from the digital economy.

In 2025, the PM SVANidhi (PM Street Vendor’s AtmaNirbhar Nidhi) scheme stands as a beacon of hope and empowerment for this vital community. Launched in 2020 as a response to the COVID-19 crisis, the scheme has since evolved into a comprehensive support system, offering collateral-free loans, digital incentives, and a pathway to financial inclusion. With the government’s renewed commitment and a future-ready roadmap, PM SVANidhi is transforming the lives of street vendors, making them true partners in India’s journey towards inclusive urban growth.

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Scheme Overview: The Evolution of PM SVANidhi

The PM SVANidhi scheme was launched by the Ministry of Housing and Urban Affairs on June 1, 2020, as an emergency response to the economic devastation caused by the pandemic. Street vendors, who lost their livelihoods almost overnight, were the primary focus. The scheme’s initial goal was simple yet powerful: provide affordable, collateral-free working capital loans to help vendors restart their businesses and regain financial stability 

.Over the years, PM SVANidhi has grown in scope and ambition. By 2025, it is no longer just a relief measure but a flagship program for urban livelihood empowerment. The scheme now offers higher loan amounts, digital payment incentives, and holistic support for vendors and their families. Its coverage has expanded to include peri-urban and census towns, and its digital backbone has made it a model for financial inclusion and technology adoption in the informal sector.

Key Milestones (2020–2025)

• 2020: Scheme launched; ₹10,000 collateral-free loan; digital incentives introduced.
• 2021–2022: Incremental loans (₹20,000, ₹50,000); digital onboarding and training.
• 2023: National awards for innovation and digital transformation.
• 2024: Scheme restructured; loan tranches increased; UPI RuPay card introduced.
• 2025: Lending period extended to 2030; coverage expanded; digital incentives raised .

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Objectives: What PM SVANidhi Aims to Achieve

The PM SVANidhi scheme is built on a foundation of inclusion, empowerment, and resilience. Its core objectives are:

• Provide affordable, collateral-free working capital loans to street vendors, enabling them to restart, sustain, and expand their businesses.
• Promote digital payments and financial inclusion by incentivizing the adoption of digital transactions and integrating vendors into the formal financial system.
• Encourage credit discipline through interest subsidies and incremental loan access for timely repayment.
• Support holistic development by linking vendors and their families to other government welfare schemes, such as health insurance, pensions, and skill development  .

These objectives align with the broader Atmanirbhar Bharat (Self-Reliant India) vision, aiming to empower marginalized communities and foster inclusive urban economic growth.

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Eligibility: Who Can Apply in 2025?

The PM SVANidhi scheme is designed to be inclusive and accessible. As of 2025, the eligibility criteria are as follows:

• Street Vendor Status: The applicant must be a street vendor engaged in vending in urban areas, including those who sell goods or services on footpaths, streets, or through mobile means.
• Certificate of Vending/Identity Card: Vendors must possess a Certificate of Vending (CoV) or a valid identity card issued by the respective Urban Local Bodies (ULBs). Vendors identified in surveys but yet to receive a CoV or ID card, and those who returned to their native places during the pandemic but have resumed vending, are also eligible   .
• Aadhaar Linkage: The applicant’s mobile number should be linked to their Aadhaar card for authentication .
• Urban Area Focus: The scheme is specifically for vendors operating in urban areas, as defined by municipal or local authorities .

This broad eligibility ensures that even the most marginalized vendors can access the scheme’s benefits.

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Application Process: How to Apply for PM SVANidhi in 2025

The application process for PM SVANidhi has been streamlined and digitized to maximize accessibility:

1. Prepare Essential Documents:
   • Certificate of Vending or valid ID card from ULB
   • Aadhaar card (with mobile number linked)
   • Recent passport-size photograph
   • Bank account details 
2. Register on the PM SVANidhi Portal:
   • Visit the official PM SVANidhi portal.
   • Sign up using your mobile number and complete OTP verification.
3. Fill Out the Application Form:
   • Log in to the portal.
   • Complete the online application with personal, business, and bank details.
   • Upload the required documents.
4. Submit the Application:
   • Review and submit the application online.
   • Receive an application reference number for tracking.
5. Verification and Approval:
   • The application is verified by the Urban Local Body and the lending institution.
   • Upon successful verification, the loan is sanctioned and disbursed directly to the applicant’s bank account.
6. Loan Disbursement:
   • The first loan is up to ₹15,000 (increased from ₹10,000 in 2024).
   • On timely repayment, vendors become eligible for a second loan of up to ₹25,000, and subsequently up to ₹50,000 .

Note: Assistance is available at municipal offices and Common Service Centres (CSCs) for those who need help with the digital process.

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Benefits: What Street Vendors Gain from PM SVANidhi

The PM SVANidhi scheme offers a comprehensive package of benefits:

1. Collateral-Free Micro-Loans

• Loan Amounts: Up to ₹15,000 in the first cycle, ₹25,000 in the second, and ₹50,000 in the third.
• Tenure: Loans are provided for a tenure of one year, repayable in monthly installments.
• No Collateral: Loans are completely collateral-free, making them accessible to informal sector vendors  .

2. Interest Subsidy

• 7% Interest Subsidy: Vendors receive a 7% per annum interest subsidy on regular repayment, credited directly to their accounts quarterly .

3. Digital Payment Incentives

• Monthly Cashback: Up to ₹100 per month for digital transactions, with enhanced incentives up to ₹1,600 per year for retail and wholesale digital payments  .
• Purpose: These incentives encourage digital literacy and formalize the street vending sector .

4. Financial Inclusion and Socio-Economic Upliftment

• Access to Formal Credit: Vendors build a credit history, enabling future access to larger loans and financial services.
• Linkage to Welfare Schemes: Through the ‘SVANidhi se Samriddhi’ initiative, vendors and their families are linked to other government benefits .

5. UPI-Linked RuPay Credit Card

• Digital Credit Access: Vendors who repay their second loan on time are eligible for a UPI-linked RuPay credit card, providing instant access to credit for business and personal needs .

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Impact Stories: Real Lives, Real Change

The true measure of PM SVANidhi’s success lies in the stories of street vendors whose lives have been transformed:

• Shiv Kumar’s Revival: After the pandemic lockdowns, Shiv Kumar, a street vendor, used the PM SVANidhi loan to restock his goods and gradually increase his daily earnings. The financial boost helped him regain stability and confidence .
• Empowerment in Assam: In Dibrugarh, Assam, vendors shared how collateral-free loans enabled them to purchase new inventory and equipment, directly contributing to business expansion. The scheme’s accessibility and digital incentives have fostered entrepreneurship at the grassroots level .
• Digital Leap: Many vendors, previously unfamiliar with digital payments, have adopted UPI and QR codes, attracting new customers and improving transaction security. This digital shift has made their businesses more resilient and integrated into the formal economy .

These stories are echoed across India, with over 68 lakh unique street vendors benefiting from the scheme as of July 2025.

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Role in Financial Inclusion and Urban Livelihood Improvement

PM SVANidhi is a game-changer for financial inclusion in India’s urban informal sector:

• Bridging the Credit Gap: By offering collateral-free loans and simplified application processes, the scheme brings street vendors—traditionally excluded from formal credit—into the banking system .
• Building Credit Histories: Regular loan repayments and digital transactions help vendors establish a credit profile, opening doors to future financial products .
• Reducing Dependence on Moneylenders: Access to affordable credit reduces reliance on informal lenders and the risk of debt traps .
• Socio-Economic Empowerment: Special provisions for women, SC/ST, and marginalized groups promote self-reliance and dignity of labor .

Empirical studies show that PM SVANidhi has led to significant increases in daily income, improved business sustainability, and enhanced digital literacy among street vendors .

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Digital Transformation: Technology as an Enabler

A defining feature of PM SVANidhi is its focus on digital transformation:

• Digital Payments: The scheme incentivizes the use of UPI, QR codes, and mobile wallets, with over 557 crore digital transactions worth ₹6.09 lakh crore conducted by beneficiaries as of July 2025 .
• Financial Literacy Drives: Training and awareness programs educate vendors about digital payments, helping them build a digital transaction history and access future credit .
• UPI-Linked RuPay Credit Card: Introduced in 2024, this card provides instant digital credit, further integrating vendors into the formal financial ecosystem .
• Monitoring and Data Analytics: The digital nature of transactions allows for real-time monitoring, transparency, and data-driven policy decisions .

Despite challenges like low digital literacy and infrastructure gaps, the scheme’s digital backbone is driving a new era of financial empowerment for street vendors .

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Government Support and Policy Updates (2025)

The government’s commitment to PM SVANidhi is stronger than ever:

• Extension to 2030: The Union Cabinet has extended the scheme’s lending period to March 31, 2030, ensuring long-term support .
• Increased Outlay: A total outlay of ₹7,332 crore has been allocated for the extended period, underlining the government’s intent to scale up the scheme .
• Enhanced Loan Terms: The first tranche loan amount has been increased to ₹15,000, with subsequent tranches offering even higher amounts .
• Digital and Technological Support: The scheme now includes UPI-linked RuPay credit cards and enhanced digital cashback incentives .
• Targeted Beneficiaries: The revamped scheme aims to benefit 1.15 crore street vendors by 2030, including 50 lakh new beneficiaries .

The government is also focusing on capacity building, entrepreneurship training, and holistic welfare through the ‘SVANidhi se Samriddhi’ initiative.

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Future Roadmap: What Lies Ahead for PM SVANidhi

Looking ahead, the future of PM SVANidhi is both ambitious and inclusive:

• Broader Coverage: The scheme will expand to cover more urban, peri-urban, and census towns, ensuring that no street vendor is left behind .
• Deeper Financial Inclusion: Continued collaboration with banks and fintech companies will make credit and digital services even more accessible .
• Technology-Driven Transformation: The adoption of UPI-linked RuPay credit cards and digital incentives will further formalize the street vending sector .
• Continuous Monitoring: Ongoing reviews and adaptive frameworks will ensure the scheme remains relevant and effective .
• Integration with Social Security: Efforts are underway to link PM SVANidhi with broader social security schemes, providing health insurance, pensions, and welfare benefits to vendors .

The government’s vision is clear: to make street vendors true partners in India’s urban growth story, empowered by credit, technology, and opportunity.

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Key Takeaways and Future Outlook

• PM SVANidhi has evolved from a COVID-19 relief measure to a comprehensive empowerment program for street vendors.
• As of July 2025, over 96 lakh loans worth ₹13,797 crore have been disbursed, benefiting more than 68 lakh unique vendors .
• The scheme’s focus on digital payments, financial inclusion, and holistic welfare is transforming the urban informal sector.
• With an extended timeline to 2030 and a robust budget, PM SVANidhi is set to empower 1.15 crore street vendors, making them key drivers of India’s urban economy.
• Continued innovation, digital adoption, and policy integration will be crucial to realizing the scheme’s full potential.

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References Links

• PM SVANidhi Official Portal – for the latest scheme guidelines and application process.
• Press Information Bureau – PM SVANidhi Updates – for government press releases and policy announcements.
• The Hindu – PM SVANidhi News – for in-depth news coverage and analysis.

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FAQ: PM SVANidhi Scheme 2025

For the latest updates, visit the PM SVANidhi Official Portal or check Press Information Bureau and The Hindu for news and policy developments.