PM SVANidhi

The launch

• PM SVANidhi was launched by the Ministry of Housing and Urban Affairs on 1 June 2020.
• It gives collateral-free working capital loans to street vendors.
• The aim was to restart businesses hit by COVID-19.

Loan tiers

• The first loan had a one-year tenure. On timely repayment, vendors can take a second, then a third.
• The original limits were ₹10,000, then ₹20,000 (from 9 April 2021), then ₹50,000 (from 1 June 2022).
• After the 2025 restructuring, the first loan is ₹15,000 and the second ₹25,000. The third stays at ₹50,000.

Rewards for good behaviour

• Vendors who repay regularly get a 7% a year interest subsidy.
• Digital payments earn cashback. The original rate was ₹1 per transaction, up to ₹1,200 a year.
• The 2025 restructuring raised digital incentives to as much as ₹1,600.

What changed in 2025

• The Union Cabinet approved a restructured scheme on 27 August 2025.
• It runs to 31 March 2030, with an outlay of ₹7,332 crore.
• It aims to reach 1.15 crore beneficiaries, including 50 lakh new ones.
• Vendors who repay the second loan can get a UPI-linked RuPay credit card.
• Source: PIB, Cabinet decision.

How much so far

• By 12 July 2026, about 76.95 lakh vendors had taken 1.15 crore loans.
• The loans were worth over ₹18,475 crore.

Who can apply

• States and Urban Local Bodies identify eligible vendors, under the Street Vendors Act, 2014.
• The scheme is demand-driven. Migrant and seasonal vendors can apply on the portal or app.

Why it lasted

• It gained new loan tiers in 2021 and 2022.
• It was restructured in 2025.
• So street-vendor credit is now treated as permanent infrastructure, not one-time relief.

Small nudges, big effect

• A ₹1,200 cashback looks small.
• But it nudges cash-reliant vendors toward digital payments and a credit history.

Outreach matters

• Because the scheme is demand-driven, take-up depends on local outreach.
• The government uses radio jingles, local-language material and door-to-door melas.

Related reading

• Another livelihood scheme with tracked targets: Lakhpati Didi.
• Why migrants and vendors fill cities: Why Big Cities Attract More Migrants.
• A similar microcredit idea for women: Self-Help Groups and Women’s Empowerment.

The plan

• On 11 July 2026, Lakhanpur in Kathua district, Jammu and Kashmir, was among the first towns approved under the “Street Food Hub” plan.
• The Ministry plans up to 50 hubs, with preference to towns with high tourism potential.
• Lakhanpur’s hub covers 1,754.25 sq m in two clusters and will promote Dogra cuisine. It lies on the route to Vaishno Devi and serves Amarnath Yatra traffic. See Festivals of India.
• Each approved hub gets ₹4 crore, released in three instalments.
• The Ministry received 126 proposals from 32 States and UTs.
• Cities with their own Street Vending Plan get an extra ₹25 lakh.
• Source: PIB, 11 July 2026.