PM Svanidhi Scheme Extended: Street Vendors to Get Higher Loans Without Collateral, Credit Cards Now Included

The Central Government has announced a major update for India’s street vendors under the popular PM Street Vendor’s AtmaNirbhar Nidhi (PM Svanidhi) scheme. This initiative, which has been a financial lifeline for small vendors such as vegetable sellers, tea stall owners, and other hawkers, will now offer higher loan amounts without the need for any collateral. Additionally, street vendors will soon have access to credit cards linked to UPI for emergency and personal needs.

Scheme Extended Till March 2030

In a significant decision, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the PM Svanidhi scheme until March 31, 2030. A budget of ₹7,332 crore has been cleared to ensure wider outreach and smoother implementation. Earlier scheduled to end on December 31, 2024, the scheme’s revised target aims to reach 1.15 crore beneficiaries, including 50 lakh new street vendors across the country.

Loan Limits Increased for Vendors

Under the updated guidelines, loan amounts have been revised upward:

• First loan increased from ₹10,000 to ₹15,000.

• Second loan raised from ₹20,000 to ₹25,000.

• Third loan remains unchanged at ₹50,000.

These loans will continue to be collateral-free and will carry an interest rate of 7% per annum. Borrowers who repay on time will become eligible for the next loan slab.

Credit Cards for Street Vendors

One of the most exciting additions to the scheme is the introduction of credit cards for street vendors. Those who successfully repay the second loan of ₹25,000 on schedule will be able to apply for a UPI-linked credit card. This will allow them to meet urgent personal or business-related expenses conveniently.

Furthermore, vendors who adopt digital transactions will be rewarded. The scheme offers an incentive of up to ₹1,600 to encourage cashless payments, making the process more transparent and secure.

Implementation and Monitoring

The Ministry of Housing and Urban Affairs will be the nodal agency for executing this scheme, while the Department of Financial Services will ensure seamless coordination with banks and financial institutions for loan disbursal and credit card issuance.

Background of the Scheme

Launched on June 1, 2020, in the aftermath of the COVID-19 pandemic, the PM Svanidhi scheme was designed to support small vendors who were among the hardest hit by lockdowns and economic disruptions. As of July 30, 2025, more than 68 lakh vendors have benefited, with over 96 lakh loans worth ₹13,797 crore disbursed nationwide.

The scheme’s step-by-step lending model helps build creditworthiness. The first loan of ₹15,000 can be repaid over 12 months, followed by the second loan of ₹25,000, which can be repaid within 12–18 months. The final slab of ₹50,000 offers a longer repayment period of up to 36 months.

Who Can Apply?

The scheme is open to all street vendors operating in cities and towns, including hawkers, vegetable sellers, tea stall owners, and small kiosk operators. Applicants must have a valid street vendor ID card or certificate issued by the local urban body. Those without documentation can still apply after verification by the municipal authorities.

With this expansion, the PM Svanidhi scheme is set to become a powerful tool for financial inclusion, providing vendors with more liquidity, credit-building opportunities, and incentives for going digital.