By Shyamu Maurya

Copyright informalnewz

Guaranty-free government loan: The government launched the PM Svanidhi Yojana on June 1, 2020, to provide financial assistance to street vendors to start their businesses; this scheme will now continue until March 31, 2030. The loan limit under this scheme has also been increased from ₹80,000 to ₹90,000.

PM Svanidhi Yojana: During the COVID-19 pandemic, when small businesses were severely impacted and street vendors’ livelihoods were completely disrupted, the Narendra Modi government, through its Cabinet, launched the Pradhan Mantri Street Vendor Atmanirbhar Nidhi (PM SVANidhi) scheme to support them. Under this scheme, the government provided interest-free loans of up to ₹80,000 to help street vendors restart their businesses. Now, the Modi government has increased the loan limit under this scheme. Beneficiaries will now be eligible for loans of up to ₹90,000, also without any collateral. Furthermore, the deadline for the PM SVANidhi scheme has been extended to 2030.

Benefits available till March 31, 2030

The Union Cabinet has approved the extension and restructuring of the Pradhan Mantri Street Vendor Atmanirbhar Nidhi (PM SVANidhi) scheme, a significant relief measure for millions of street vendors and small traders. According to reports, this government decision will benefit 1.15 crore street vendors, including 50 lakh new beneficiaries. The scheme will continue to be implemented by the Ministry of Housing and Urban Affairs, in collaboration with the Department of Financial Services, until March 31, 2030. This decision will entail a total expenditure of ₹7,332 crore on the government exchequer.

Not just 80,000, but loans up to 90,000 now

The government has extended the deadline for the PM Svanidhi scheme and also increased the loan limit for beneficiaries. Under this scheme, the government previously provided loans of up to ₹80,000 in three installments – ₹10,000, ₹20,000, and ₹50,000. Now, the limit has been increased, offering loans of ₹15,000 in the first stage, ₹25,000 in the second stage, and ₹50,000 in the third stage for starting small businesses. A good credit history is essential to fully benefit from this government scheme.

This means that if someone applies to start their business, they will first receive a loan of ₹15,000. After repaying this loan within the stipulated time, they will be eligible for the next installment of ₹25,000. Similarly, after repaying this loan, they will be eligible for a final installment of ₹50,000. According to government data, as of July 30, 2025, more than 68 lakh beneficiaries have received over 96 lakh loans totaling ₹13,797 crore. Approximately 47 lakh beneficiaries are digitally active, having made over 557 crore transactions worth ₹6.09 lakh crore.

Just bring your Aadhaar card and get the loan

As mentioned, this is a government-backed, collateral-free loan scheme. This means you don’t need to provide any collateral. You can easily get this loan in stages simply by presenting your Aadhaar card. All you have to do is repay the loan on time. According to the scheme rules, the loan amount can be repaid within one year. EMI payment options are also available.

These benefits include a RuPay credit card, among other things.

The government has clarified that beneficiaries of the PM Svanidhi scheme who repay their second loan on time will also receive a UPI-linked RuPay credit card, which will help them meet their business and personal financial needs. Furthermore, to encourage digital payments among small business owners, beneficiaries will also receive up to ₹1,600 in digital cashback for retail and wholesale transactions. With this expansion, the government aims to broaden the scheme’s reach and strengthen financial support for small traders.