Why in news?
The Union Cabinet approved the restructuring and extension of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme. The lending period has been extended from 31 December 2024 to 31 March 2030 with a total outlay of ₹7,332 crore.
About the scheme
Launched on 1 June 2020, PM SVANidhi provides collateral‑free working‑capital loans to street vendors. It aims to help vendors restart businesses affected by the pandemic, adopt digital payments and become self‑reliant.
Major changes under the restructuring
- Extended timeline: Vendors can now access loans until March 2030, giving them more time to avail credit and repay.
- Enhanced loan tranches: The first loan amount has been raised from ₹10,000 to ₹15,000; the second loan increases from ₹20,000 to ₹25,000; the third loan remains ₹50,000.
- UPI‑linked credit cards: Beneficiaries who repay the second loan on time will be eligible for a RuPay credit card linked to UPI for everyday purchases and emergencies.
- Digital incentives: To encourage digital transactions, vendors will receive cashback of up to ₹1,600 on retail and wholesale payments.
- Capacity building: Training programmes on entrepreneurship, financial literacy and digital skills will be converged with other government schemes. The Food Safety and Standards Authority of India (FSSAI) will conduct hygiene and food safety workshops for street food vendors.
- Integrated outreach: The ‘SVANidhi se Samriddhi’ component will be expanded through monthly Lok Kalyan Melas to connect vendors and their families to welfare schemes such as health insurance, pensions and scholarships.
Performance so far
- Since launch, more than 96 lakh loans worth about ₹13,800 crore have been disbursed to over 68 lakh vendors.
- Nearly 47 lakh beneficiaries use digital payments, having conducted over 557 crore transactions worth ₹6 lakh crore and earned ₹241 crore in cashback.
- Profiles of 46 lakh vendors have been created across 3,500 urban local bodies, facilitating targeted delivery of social benefits.
- The scheme has received awards for innovation and digital transformation in public administration.
Significance
Street vendors contribute to urban economies and provide affordable goods to millions. By enhancing access to credit, promoting digital transactions and linking vendors to welfare schemes, PM SVANidhi supports inclusive growth and financial resilience.