New PM SVANidhi Scheme 2.0 to roll out, bringing financial aid to street vendors
The Indian government is set to launch the much-anticipated PM SVANidhi Scheme 2.0, a revamped initiative aimed at providing enhanced financial support and digital integration to street vendors across the country.
The original PM SVANidhi Scheme, which concluded on March 31, 2025, had cumulatively disbursed loans worth Rs 13,792 crore to 68 lakh street vendors, offering working capital loans up to Rs 50,000 with an interest subsidy of 7% per annum. The new scheme promises to build upon these successes, offering significant enhancements to further empower street vendors.
One of the key changes in PM SVANidhi 2.0 is the introduction of UPI-linked RuPay credit cards with a limit of Rs 30,000. This innovation merges digital payments technology with credit access, allowing vendors to transact digitally with zero transaction cost, promoting a cashless economy and financial inclusion.
In addition to the increased credit limit, the scheme continues to provide an interest subsidy of 7% per annum to make borrowing affordable for street vendors. This financial support will be instrumental in helping vendors expand their businesses and improve their livelihoods.
Beyond credit and digital payments, the scheme also includes capacity-building support to enhance vendors' skills and market reach, ensuring sustainable growth for their businesses. This could include training in business management, marketing, and financial literacy, among other areas.
The revamped PM SVANidhi Scheme will also continue to encourage digital onboarding of vendors and offer cashback incentives for digital transactions, reflecting the government’s push for digitization and formalization of street vendors’ businesses.
The new PM SVANidhi Scheme 2.0 is expected to be co-terminus with the 16 Finance Commission award period ending FY31, subject to approval by the Expenditure Finance Committee (EFC). Street vendors play a significant role in ensuring the availability of goods and services at affordable rates at the doorstep of city dwellers, and the new scheme aims to further formalize this sector, opening up new opportunities for growth and economic empowerment.
From vegetables and fruits to ready-to-eat street food, textiles, apparel, footwear, artisan products, books, and stationery, the goods and services provided by street vendors are diverse and essential to urban life. The new scheme is poised to provide these vendors with the tools they need to thrive in the modern economy.
[1] https://pib.gov.in/PressReleasePage.aspx?PRID=1682407 [2] https://pib.gov.in/PressReleasePage.aspx?PRID=1682407 [4] https://pib.gov.in/PressReleasePage.aspx?PRID=1682407
- The PM SVANidhi Scheme 2.0, a revised initiative by the Indian government, aims to provide digital integration and enhanced financial support to street vendors, contributing to the nation's economy and financial inclusion.
- To promote a cashless economy and expand business opportunities, the new scheme offers UPI-linked RuPay credit cards with a limit of Rs 30,000 for vendors' digital transactions.
- Beyond credit and digital payments, the scheme provides capacity-building support for vendors, enhancing their skills, market reach, and financial literacy in personal-finance and business management.
- The Revamped PM SVANidhi Scheme, co-terminus with the 16 Finance Commission award period ending FY31, aims to formalize the street vendor sector, fostering growth and economic empowerment in the DEFI, business, and personal-finance spaces.
