Budget 2025: Street vendors to get Rs 30,000 limit credit card under PM SVANidhi scheme – Budget 2025 News

In Budget 2025, the Finance Minister has made a significant announcement for street vendors. Under the Prime Minister Street Vendors Atmanirbhar Nidhi (PM SVANidhi) scheme, street vendors will now be provided with credit cards. These credit cards will have a limit of Rs 30,000, allowing vendors to take loans of up to Rs 30,000 for their businesses. The interest rates on these credit cards will be minimal. This scheme was launched by the Ministry of Housing and Urban Affairs on July 2, 2020, during the COVID-19 pandemic.

The scheme was introduced to help street vendors and small shop owners who suffered losses due to the COVID-19 lockdown to restart their businesses. Vendors operating carts or stalls on roadsides, selling fruits, vegetables, laundry services, salons, and paan shops, can avail of loans under PM SVANidhi. Timely loan repayment also offers additional benefits.

Total Loan Amount Available

Under the PM SVANidhi scheme, vendors can avail of loans up to Rs 50,000 in the following phases:

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1st Tranche – Loan up to Rs 10,000 for 12 months

2nd Tranche – Minimum Rs 15,000 and maximum Rs 20,000 for 18 months

3rd Tranche – Minimum Rs 30,000 and maximum Rs 50,000 for 36 months

No Collateral Required

No collateral or security is required for availing of the loan. The repayment will be in monthly installments. The scheme provides an interest subsidy of 7% per annum, which will be credited directly to the beneficiary’s account on a quarterly basis. If the loan is repaid before the due date, the entire subsidy will be credited at once. Additionally, vendors making digital transactions will receive a cashback of up to Rs 1,200 per year. Those who repay their loans on time and early will be eligible for higher loan amounts in the future.

Who Provides the Loan?

Under this scheme, loans will be provided by scheduled commercial banks, regional rural banks, small finance banks, cooperative banks, non-banking financial companies (NBFCs), microfinance institutions, and self-help group (SHG) banks. The Small Industries Development Bank of India (SIDBI) is the implementing partner for the scheme.

The required KYC documents include an Aadhaar card and voter ID. Other acceptable documents include a driving license, MGNREGA card, or PAN card. Loans can also be applied for through Common Service Centers (CSCs) across the country.

Application Process & Conditions

To apply for a loan under PM SVANidhi, the vendor’s mobile number must be linked to Aadhaar. Applications can be submitted via the official website pmsvanidhi.mohua.org.in or through the mobile app.

Vendors can also contact their local banking correspondent or microfinance institution agent for assistance. Eligibility for the loan and inclusion in the survey list can be checked on the website. Vendors whose names are on the survey list but do not have an ID card or a Certificate of Vending can still benefit from the scheme. A provisional Certificate of Vending will be issued through the web portal.

This scheme also covers vendors who live in rural areas near urban regions but sell their goods in cities or towns and were not included in the survey. Such vendors must obtain a Letter of Recommendation from the Urban Local Body (ULB) or Town Vending Committee. A general application can also be submitted to the urban local authority for consideration.

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