The Government of India has launched PM SVANidhi 2.0, a restructured and upgraded version of the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi scheme. This enhanced version empowers street vendors with loans up to ₹50,000, a ₹30,000 UPI-linked RuPay Credit Card, and exciting digital cashback incentives.
Whether you’re running a fruit stall in Kanpur, a food cart in Delhi, or selling clothes in Mumbai, this scheme can transform your small business into a sustainable source of income.
What is PM SVANidhi 2.0?
PM SVANidhi (launched in 2020) was designed to provide collateral-free working capital loans to street vendors impacted by COVID-19. Now, with PM SVANidhi 2.0, the scheme is extended till March 31, 2030, offering higher loan amounts, RuPay Credit Card facilities, and digital incentives.
The scheme is jointly managed by the Ministry of Housing & Urban Affairs (MoHUA) and the Department of Financial Services, aiming to benefit 1.15 crore vendors, including 50 lakh new beneficiaries.
PM SVANidhi Scheme: Background and Need
India’s urban street vendors—commonly known as thelewala, rehriwala, hawkers, phadwala—form the backbone of the urban informal economy. They sell vegetables, fruits, tea, snacks, clothes, shoes, books, repair services, laundry, and more at affordable rates to millions of city dwellers.
During the COVID-19 lockdown, these vendors lost their daily earnings, exhausted their small savings, and faced severe livelihood challenges. To provide immediate working capital, the Government launched PM SVANidhi in 2020.
Key Features of PM SVANidhi (Original Scheme)
- Central Sector Scheme: Fully funded by the Ministry of Housing and Urban Affairs (MoHUA).
- Loan Amount: ₹10,000 collateral-free working capital loan.
- Incremental Loans: ₹20,000 and ₹50,000 on timely repayment.
- 7% Interest Subsidy: Credited directly into bank accounts quarterly.
- Digital Cashback: Up to ₹1,200/year for UPI/digital transactions.
- Eligibility: Vendors registered under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
- Identification: Certificate of Vending, ULB ID card, or LoR (Letter of Recommendation) from Urban Local Bodies (ULBs)/Town Vending Committees (TVCs).
- Loan Tenure: 1 year, repayable in monthly installments.
- No Prepayment Penalty.
Objectives and Benefits of PM SVANidhi 2.0
- Boost Working Capital: Bigger loans to increase inventory & business.
- Encourage Repayment: Incentives for timely EMI payments.
- Promote Digital Inclusion: RuPay & UPI adoption.
- Formalization: Street vendors included in formal financial ecosystem.
- Support Women Entrepreneurs: Many women vendors benefit from easy credit.
Eligibility Criteria for Beneficiaries
- Vendors active in urban areas on or before 24 March 2020.
- Must have Certificate of Vending/ID card issued by ULBs, or
- Included in ULB survey list but not yet issued certificate, or
- Having Letter of Recommendation (LoR) from ULB/TVC, or
- Vendors from peri-urban/rural areas vending within ULB limits (with LoR).
Eligibility Criteria for PM SVANidhi 2.0
- Street vendors (hawkers, rehriwala, thelewala) in urban/peri-urban areas.
- Must be registered with ULBs or have vending certificate/ID card.
- Vendors recognized via survey or holding LoR.
- Rural vendors vending inside ULB limits (with LoR).
- Migrant vendors returning post-COVID.
Special Provisions
- Vendors who migrated to villages during COVID-19 can apply when they return.
- ULBs must verify and issue LoRs within 15 days of application.
Achievements of PM SVANidhi (Till July 2025)
- 96,09,092 street vendors received loans
- Total loan amount disbursed: ₹13,794 crore (as of 11 July 2025)
- Lakhs of vendors joined the digital economy through UPI & QR codes
PM SVANidhi 2.0: What’s New and What’s Changing?
PM SVANidhi 2.0 brings upgraded financial and digital benefits.
| Feature | Old Scheme | PM SVANidhi 2.0 |
|---|---|---|
| Maximum Loan | ₹10,000 → ₹20,000 → ₹50,000 (staggered) | Direct access up to ₹50,000 |
| Interest Subsidy | 7% | 7% (continued) |
| Digital Cashback | Up to ₹1,200/year | Likely enhanced; up to ₹1,600/year |
| Digital Credit Access | None | UPI-linked RuPay Credit Card (₹30,000 limit) |
| Implementation | Extended till Dec 2024 | Extended till March 2030 |
| Coverage | Vendors under SV Act, 2014 | Existing + new digital users |
| Budget | Initial allocation | ₹500+ crore for Phase 2 |
Interest Subsidy and Cashback
- 7% annual interest subsidy continues.
- Paid directly to vendor’s account quarterly.
- Digital payment incentives continue, likely increased from ₹1,200 to ₹1,600/year.
New RuPay Credit Card
- UPI-linked RuPay Credit Card with a ₹30,000 limit.
- Helps vendors make cashless purchases and build a digital credit history.
Bigger, Simpler Loans
- Vendors can now directly access ₹50,000, instead of staggered steps.
- Loans remain collateral-free.
- Repayment in monthly EMIs.
Digital Empowerment
- Integration of UPI payments, QR codes, and RuPay card.
- Entire loan process to be more digital-first via portal/app.
How to Apply Online for PM SVANidhi 2.0?
- Check eligibility via ULB or official portal.
- Prepare documents: Aadhaar, bank details, mobile number, vending certificate/LoR.
- Apply online at pmsvanidhi.mohua.gov.in or via mobile app.
- Verification by ULB/TVC.
- Loan sanctioned & disbursed directly to bank account.
- RuPay Credit Card issued (where eligible).
- Start repayment via monthly EMIs → next loan cycle unlocked.
FAQs
Q1. What is PM SVANidhi 2.0?
It is the upgraded version of PM SVANidhi offering loans up to ₹50,000, 7% subsidy, and a RuPay Credit Card (₹30,000 limit).
Q2. Who can get loans under PM SVANidhi 2.0?
Any registered urban/peri-urban street vendor with valid vending certificate/ID or LoR.
Q3. How is the loan repaid?
Through monthly EMIs, with option to prepay without penalty.
Q4. What is the 7% interest subsidy?
The government reimburses 7% of your annual interest directly into your bank account.
Conclusion
PM SVANidhi 2.0 is not just a loan scheme—it is a policy shift towards building a self-reliant and digitally empowered informal sector in India. With bigger loans, digital RuPay cards, and interest subsidies, the scheme ensures that street vendors are no longer just surviving but thriving and scaling their businesses.
If you are a street vendor, don’t miss this opportunity. Apply now and secure your financial future under PM SVANidhi 2.0 (till March 2030).