Union Budget 2025: PM SVANidhi Scheme To Be Revamped With Enhanced Loans And UPI-Linked Credit Cards

Komal Bajpai

Author

Updated: 16-04-2025 at 12:35 PM

The informal Indian market depends heavily on street vendors who commonly find it challenging to obtain reasonably priced lending services. Finance Minister Nirmala Sitharaman announced during the Union Budget 2025 that the PM SVANidhi scheme would receive an upgrade through the enhancement of loans and UPI-linked digital credit cards for ease of access. The measures provide better financial resources and business stability for the 68 lakh street vendors who are registered with the system.

Key Announcements for PM SVANidhi Scheme

The government intends to better the PM SVANidhi scheme through increased financial support while implementing digital lending choices. The revised scheme includes:

Feature	Previous Limit	New Limit
Initial Loan Amount	₹10,000	₹15,000
Second Loan Amount	₹20,000	₹25,000
UPI-Linked Credit Card Limit	Not available	₹30,000
Total Beneficiaries Covered	68 lakh	Increased Coverage

Loan amounts have risen substantially to allow vendors better opportunities for business growth.
UPI-Linked Credit Cards bring digital transaction capabilities that reach up to ₹30,000 to meet requirements for security and user experience.
Vendors participating in the programme will benefit from training sessions which will teach them financial literacy methods for better financial management.

Impact of PM SVANidhi on Street Vendors

PM SVANidhi achieved its goal by offering low-cost micro-credit loans which freed street vendors from high-interest informal sector loans after its initial rollout. The scheme’s impact includes:

The programme provided economic support to more than 68 lakh street vendors starting from its launch.
Increased digital transactions and financial inclusion.
Reduction in dependence on private moneylenders.
Greater business stability for small vendors across urban areas.

Also Read: RBI Tightens Personal Loan Rules: Credit Scores To Be Updated Every 15 Days

Previous Budget Reforms Supporting Street Vendors

Multiple budget initiatives from the government have been implemented to promote street vendors along with small businesses.

Budget 2021 established the PM SVANidhi scheme providing ₹10,000 as its starting loan level.
Budget 2023 Expanded the scheme to cover more vendors and increase loan amounts.
Budget 2024 implemented digital lending solutions as an economic strategy to promote UPI usage from vendors both as borrowers and payers in cashless transactions.

Conclusion

The PM SVANidhi scheme receives enhanced financial aid in Budget 2025 through higher loan amounts UPI credit cards and vendor training programmes. Financial inclusion in the informal sector will grow through reforms which give vendors better economic possibilities and lower their dependence on informal credit sources. Small business empowerment from the government leads to an economic growth model that promotes sustainability and inclusion in India.

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