Cabinet clears restructuring, extension of PM SVANidhi scheme till 2030

The Union Cabinet on Wednesday approved the restructuring and extension of the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme till March 31, 2030, with a total outlay of ₹7,332 crore.

The decision was taken at a meeting chaired by Prime Minister Narendra Modi, an official statement said.

It said the first tranche loan limit has been raised from ₹10,000 to ₹15,000 and the second from ₹20,000 to ₹25,000, while the third tranche remains at ₹50,000.

Street vendors repaying their second loan on time will be eligible for a UPI-linked RuPay credit card to meet emergent business and personal needs, it said, adding that incentives of up to ₹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 11.5 million beneficiaries, including 5 million new street vendors.

According to the statement, the implementation of the scheme will be a joint responsibility of the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS).

While the HUA ministry will anchor the scheme, the DFS will facilitate access to loans and credit cards through banks and financial institutions.

The restructured scheme provides enhanced loan amounts, UPI-linked RuPay credit cards, digital cashback incentives and wider geographical coverage, the statement said.

It also focuses on building the capacity of the street vendors with a focus on entrepreneurship, financial literacy, digital skills and marketing through convergence. Standard hygiene and food safety training would be conducted for street food vendors, in partnership with FSSAI.

The statement said the government had initially launched PM SVANidhi Scheme on June 1, 2020 to support street vendors who faced unprecedented hardships during the COVID-19 pandemic.

However, it has proved to be more than financial support for street vendors since the inception of the scheme and has given them a sense of identity and formal recognition for their contribution to the economy.

The PM SVANidhi scheme has already achieved significant milestones. As of July 30, over 9.6 million loans amounting to ₹13,797 crore have been disbursed to more than 6.8 million street vendors, it said.

Nearly 4.7 million digitally active beneficiaries have conducted over 5.57 billion digital transactions worth ₹6.09 trillion, earning a total cashback of ₹241 crore.