Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has been approved for restructuring and extension by the Union Cabinet on Wednesday. The scheme has been extended till March 31, 2030, with a disbursement of Rs 7,332 crore.
According to the official statement, the decision was taken at a meeting chaired by PM Modi. The statement said that the first tranche loan limit has been raised from Rs 10,000 to Rs 15,000 and the second from Rs 20,000 to Rs 25,000, while the third tranche remains at Rs 50,000.
PM SVANidhi revamped
Street vendors who would timely repay their second loan will be eligible for a UPI-linked RuPay credit card to meet their emergent business and personal needs.
The statement further mentioned that incentives of up to Rs 1,600 will also be offered to vendors opting for digital payments on retail and wholesale transactions. The restructured scheme, which was earlier valid till December 31, 2024, aims to benefit 1.15 crore beneficiaries, including 50 lakh new street vendors.
The scheme will be jointly implemented by both the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS), helping vendors get loans and credit cards from banks.
What’s new in the scheme?
This updated plan offers larger loans, UPI-enabled RuPay credit cards, and digital cashback rewards, along with a broader reach. The scheme also includes training on entrepreneurship, financial literacy, and digital skills, and provides hygiene and food safety courses in partnership with FSSAI.
Initially launched in June 2020 to help street vendors impacted by the COVID-19 pandemic, the scheme has since done more than just provide financial aid; it has given vendors a formal identity and recognised their role in the economy.
The PM SVANidhi scheme has already achieved significant milestones. As of July 30, over 96 lakh loans amounting to Rs 13,797 crore have been disbursed to more than 68 lakh street vendors, it said. Nearly 47 lakh digitally active beneficiaries have conducted over 557 crore digital transactions worth Rs 6.09 lakh crore, earning a total cashback of Rs 241 crore.
(With PTI Inputs)
