Street vendors across India are set to benefit from a significant expansion of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme. According to recent reports, the government is preparing to increase the loan amount and introduce credit cards for eligible vendors under the revamped scheme. The proposal will soon be presented for approval by the Cabinet.

This move aims to enhance the financial inclusion of small vendors, especially those who migrate from rural areas to urban centers in search of livelihood.

Launched in 2020 during the COVID-19 pandemic, the PM SVANidhi Scheme has already helped over 6.8 million street vendors by offering affordable loans at subsidized interest rates. Now, under the upcoming upgrade, the loan amount is expected to be increased by an additional ₹10,000, giving vendors more capital to invest in their micro-businesses.

Vendors with good repayment records—especially those who have successfully repaid three earlier loans—may become eligible for credit cards with a spending limit of up to ₹30,000. These cards will be integrated with UPI, making digital transactions seamless and efficient.

The terms of repayment for the credit card usage will be determined by individual banks, depending on the borrower’s creditworthiness and transaction history.

In a welcome development, street vendors migrating from rural areas to cities will also be included under the scheme’s umbrella. This extension is expected to benefit thousands of informal workers who otherwise lack access to formal banking services.

These low-interest loans will not only help vendors reduce dependency on moneylenders but also encourage them to adopt formal credit systems that promote financial discipline and long-term growth.

To qualify for the credit card facility, a good credit rating will be essential. This focus on credit performance is expected to incentivize timely repayments, thereby strengthening the overall financial ecosystem of informal traders.

Banks will issue the credit cards based on the vendor’s past loan history, transaction patterns, and adherence to repayment timelines.

Union Finance Minister Nirmala Sitharaman, during her budget speech, had hinted at improving the scheme. She emphasized the need to increase the financial capacity of vendors and promote digital payments. The extended features of the scheme—higher loan limits and UPI-linked credit cards—are in line with her vision to empower street vendors as part of India’s broader financial inclusion agenda.

The PM SVANidhi Scheme, launched in June 2020, is a micro-credit initiative aimed at supporting street vendors adversely impacted by the pandemic. The scheme provides working capital loans with a 7% interest subsidy, along with cashback incentives for digital transactions.

Its core objectives are:

• To make street vendors self-reliant

• To improve their access to formal credit

• To support the growth of their small businesses

• To foster a habit of digital payments and financial discipline

For many street vendors, borrowing from local moneylenders at high interest rates has been the only option. The enhanced PM SVANidhi scheme is a game-changer—it gives them access to affordable credit, helps build their credit history, and provides tools like credit cards that were once out of reach.

By bridging the urban-rural gap and focusing on inclusivity, the government is paving the way for a financially empowered and digitally connected informal sector.