Union Budget 2025: What is PM SVANidhi, Eligibility & What’s New for Street Vendors?

During the Union Budget 2025 Presentation on February 1, 2025, the Union Finance Minister, Nirmala Sitharaman, announced significant changes to the PM SVANidhi Scheme. The Scheme aims to further support street vendors who have been among the hardest hit by the COVID-19 pandemic. This revamped initiative is set to provide enhanced loan facilities, UPI-linked credit cards with a ₹30,000 limit, and capacity-building support.

She announced, “PM SVANidhi Scheme has benefitted more than 68 lakh street vendors, giving them respite from high-interest informal sector loans. Building on this success the scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with ₹30,000 limit and capacity-building support.”

What is PM SVANidhi?

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched by the Ministry of Housing and Urban Affairs to economically uplift and empower street vendors. It provides collateral-free working capital loans to street vendors to help them resume and grow their businesses in urban and peri-urban areas.

The scheme targets street vendors who were vending on or before March 24, 2020, and facilitates loans in three tranches:

1. First Tranche: Loan up to ₹10,000 for a tenure of 12 months.
2. Second Tranche: Loan between ₹15,000 and ₹20,000 for a tenure of 18 months.
3. Third Tranche: Loan between ₹30,000 and ₹50,000 for a tenure of 36 months.

These loans are designed to be affordable and inclusive, addressing the needs of vendors who would otherwise rely on high-interest informal loans.

Benefits and Incentives of PM SVANidhi Scheme

The scheme offers several incentives to encourage timely repayment and digital transactions:

• Interest Subsidy: 7% per annum on regular repayment of loans.
• Cashback Incentive: Up to ₹1,200 per year for undertaking prescribed digital transactions.
• Eligibility for Enhanced Loans: Regular repayment makes vendors eligible for the next tranche of loans.

Eligibility Criteria of PM SVANidhi Scheme

Street vendors who meet the following criteria can avail of the scheme:

1. Possess a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs).
2. Identified in ULB surveys but without a Certificate of Vending; provisional certificates can be issued through an IT-based platform.
3. Vendors left out of surveys but issued a Letter of Recommendation (LoR) by the ULB/Town Vending Committee (TVC).
4. Vendors from surrounding peri-urban or rural areas vending within ULB limits and possessing an LoR.

How to Apply to the PM SVANidhi Scheme?

Street vendors can apply for loans directly through the PM SVANidhi portal or visit a nearby Common Service Centre (CSC). Pre-application steps include:

• Understanding loan requirements.
• Ensuring the mobile number is linked to Aadhaar.
• Checking eligibility under the scheme rules.

Under the PM SVANidhi Scheme, credit is provided by various lending institutions, including Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies (NBFCs), Micro-Finance Institutions (MFIs), and Self-Help Group (SHG) Banks.

Conclusion 

The PM SVANidhi scheme has proven to be a lifeline for street vendors, enabling them to restart their businesses, reduce dependency on informal loans, and improve their economic well-being. With enhanced credit facilities and digital integration during Union Budget 2025, the scheme will continue to empower street vendors and contribute to the growth of India’s informal economy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.