Walk through any Indian market — Guwahati’s Fancy Bazar, Delhi’s Chandni Chowk, Kolkata’s Gariahat, or Mumbai’s Dadar — and you’ll instantly see India’s real economic backbone: street vendors.
They sell vegetables, fruits, tea, momos, clothes, snacks, toys, flowers, and hundreds of daily-use items.
They work long hours, keep cities alive, and run tiny but powerful micro-businesses.
Yet for decades, they faced the same barriers without any meaningful Street Vendor Loan.
To solve this, the government launched the PM SVANidhi scheme, giving street vendors easy working capital loans. And now, in a major policy booster, the scheme has been extended till March 2030, with higher loan limits, better digital features, and a wider beneficiary base.
This extension has turned a good scheme into a long-term micro-entrepreneurship engine.
Let’s break it down.
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The street vendor loan is a collateral-free working capital loan offered under the PM SVANidhi scheme (Prime Minister Street Vendor’s AtmaNirbhar Nidhi).
It helps vendors expand inventory, restart businesses, and build financial stability.
This is now one of India’s most significant financial inclusion programs.
Earlier, vendors had limited time to apply, upgrade, or repay.
Now with the scheme extended to 2030, they have:
This long window supports both immediate survival and long-term micro-enterprise development.
Starting with ₹15,000 itself boosts stock, improves sales, and provides predictability.
Second- and third-cycle loans allow vendors to upgrade carts, add product categories, and manage seasonal demand.
With QR codes and cashback incentives:
A vendor with a QR code looks and earns like a modern micro-entrepreneur.
This feature allows good borrowers to:
This is the beginning of “formal micro-credit culture” among street vendors.
The PM SVANidhi scheme is impactful — but let’s be realistic.
Even a basic cart today costs ₹60,000 to ₹2 lakh.
A maximum loan cycle of ₹15k → ₹25k → ₹50k is excellent for working capital, but not enough to start a new, meaningful micro-business from scratch.
Already-operating vendors benefit a lot.
But new entrepreneurs find the amount too small to start strong.
The loan can upgrade a cart —
but cannot fund:
It solves exploitation, yes.
But India still needs a bigger micro-business credit system for true entrepreneurship upliftment.
Bottom line:
PM SVANidhi is powerful — but in today’s high-inflation economy, it is a stability booster, not a full-scale growth engine.
Perfect for vendors selling:
If someone earns income in public vending spaces, this scheme is for them.
Apply online → Upload documents → Bank verification.
All major PSU + private banks.
Helpful for digital support.
For vendor certificates.
Documents: Aadhaar, mobile number, bank passbook, vendor certificate.
A vegetable vendor in Guwahati:
This is real, on-ground transformation.
The street vendor loan under the extended PM SVANidhi scheme is not charity — it is a structured pathway to:
With the 2030 extension, India has committed to supporting its smallest entrepreneurs with consistency and dignity.
This is the kind of change BusinessZindagi stands for — real opportunities that lift real people.
It is a collateral-free working capital loan provided by the Government of India to help street vendors restart, expand, and digitalize their businesses. The scheme now offers loans of ₹15,000, ₹25,000, and ₹50,000 in three cycles.
Yes. The Union Cabinet has extended and restructured the scheme till March 2030, increasing the loan amounts and adding new features like a UPI-linked RuPay credit card.
Any street vendor working in urban, peri-urban, or small-town areas who sells goods or provides services in public places is eligible. A vendor certificate or provisional certificate from the urban local body is required.
Yes, but the scheme is designed mainly as working capital, not a full start-up loan. New entrepreneurs may require additional support through MUDRA loans or state programs.
A vendor can get a maximum of ₹50,000 at one time in the third cycle. Across all cycles, the total benefit is under ₹1 lakh.
No. It is a loan with a 7% interest subsidy for timely repayment. However, vendors also get digital transaction cashback incentives.
Typically 15–30 days, depending on the bank, city verification process, and documentation.
No. Early repayment actually helps the vendor become eligible for the next cycle faster.
Yes. You can request a Provisional Certificate of Vending (PCV) from your urban local body and then apply.
Tabrez Khan is an entrepreneur and exporter who writes about real business experiences, MSME insights, and small business growth. He simplifies government schemes and startup topics for everyday entrepreneurs. Through BusinessZindagi.com, he shares practical guidance and updates to help others build and grow their ventures.
Below are credible government and authoritative sources related to the PM SVANidhi scheme and its extension:
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