PM SVANidhi Scheme 2025: New Rules & Benefits for Street Vendor Beneficiaries
the latest updates to the "PM SVANidhi Scheme" 2025! Learn about enhanced loan limits, UPI-linked credit cards, digital incentives, and eligibility changes designed to benefit street vendors across India.
PM SVANidhi Scheme Expands: Check New Rules for Beneficiaries
India’s progressive journey to support the nation’s street vendors took a major leap in 2025, as the PM SVANidhi Scheme received a dynamic expansion under the latest Union Cabinet decisions.
The government’s focus remains firm on empowering street vendors with hassle-free credit, digital tools, and new avenues to strengthen their businesses as part of Atmanirbhar Bharat.
What is the PM SVANidhi Scheme?
The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme was launched in 2020, providing working capital loans to help urban street vendors get back on their feet after the economic shocks caused by the COVID-19 pandemic.
Since its inception, the scheme has reached over 68 lakh vendors, sanctioning thousands of crores in low-interest loans and sparking hope for self-reliance.
Major Updates Announced for 2025
The latest 2025 update to the PM SVANidhi Scheme introduces several powerful changes to expand the reach and impact of the scheme.
PM SVANidhi Scheme 2025
Here are the new rules and features every beneficiary should know:
Extension of Scheme Duration: The scheme’s lending period now continues until March 31, 2030, ensuring ongoing support for current and new vendors.
Enhanced Loan Amounts:
First tranche loan limit increased from ₹10,000 to ₹15,000.
Second tranche loan limit raised from ₹20,000 to ₹25,000.
Third tranche remains at ₹50,000, supporting further business expansion.
Coverage Expansion: PM SVANidhi’s coverage now reaches beyond statutory towns to census towns and peri-urban areas, increasing rural and small-town access.
UPI-linked RuPay Credit Card Facility: Beneficiaries who successfully repay the second loan can avail themselves of a UPI-linked RuPay Credit Card, offering a credit limit of up to ₹30,000 to streamline transactions and credit access.
Digital Cashback Incentives: To promote cashless payments, digital transactions made by street vendors can now earn cashback incentives up to ₹1,600 on retail and wholesale dealings.
No Collateral Required: All working capital loans remain collateral-free and witness a simplified application process.
Eligibility Criteria for New and Existing Beneficiaries
The government has broadened the eligibility criteria in 2025 to maximize scheme outreach:
Open to street vendors operating on or before March 24, 2020, and newly registered vendors as recognized by Urban Local Bodies (ULBs) or Town Vending Committees.
Vendors must belong to cities, census towns, or peri-urban areas where the scheme is notified.
Applicants need basic documentation proof and Aadhaar-linked mobile numbers for UPI-enabled transactions.
Step-by-Step Application Process
Applying for the PM SVANidhi Scheme in 2025 remains user-friendly:
Online Application: Visit the official PM SVANidhi portal or the website of participating banks and NBFCs for scheme details.
Documentation: Submit identification, vendor certificate, and a bank account linked with Aadhaar and mobile.
Processing: Upon approval, the first tranche working capital loan of up to ₹15,000 is disbursed directly to the beneficiary’s bank account.
Digital Support: On successful repayment, move forward to access higher loan tranches and the exclusive UPI RuPay Credit Card facility.
Benefits for Street Vendors
The expanded PM SVANidhi Scheme in 2025 brings several tangible benefits:
Increased financial support for expanding businesses.
Encouragement to adopt digital payment systems, unlocking cashback rewards.
Enhanced creditworthiness upon timely repayments, opening doors for bigger loans and credit limits.
Reduced dependence on unorganized credit markets and loan sharks.
No hidden charges, processing fees, or collateral required, making the scheme inclusive and accessible.
Key FAQs About the New PM SVANidhi Rules
Who can apply for the updated PM SVANidhi Scheme?
Street vendors (including thalewalas, hawkers, etc.) vending in cities, census towns, or peri-urban areas, and recognized by authorities can apply.
What are the biggest changes for 2025?
Enhanced loan limits, expansive coverage, the launch of UPI-linked RuPay credit cards, and digital cashback incentives.
Is there any interest subsidy?
Yes, eligible street vendors receive a 7% interest subsidy on timely loan repayment.
Are digital transactions mandatory?
While not mandatory, digital payments are incentivized, enabling vendors to earn cashback and access the new RuPay credit card facility.
Why the PM SVANidhi Scheme Matters in 2025
The restructured PM SVANidhi Scheme demonstrates India’s commitment to financial inclusion and the welfare of millions of street vendors who form the backbone of urban commerce.
By embracing digital infrastructure, expanding working capital, and simplifying scheme access, the initiative paves a sustainable path for vendor livelihoods.
In summary: The PM SVANidhi Scheme’s new rules and expansion for 2025 assure greater financial stability.
inclusion, and dignity for India’s street vendors, empowering them to participate in the country’s ongoing economic growth story.