Cabinet clears ₹7,332-cr revamp and extension of PM SVANidhi till 2030

The restructured scheme, set to benefit 11.5 mn vendors, raises loan limits, introduces UPI-linked RuPay cards, digital cashback, and capacity-building initiatives

The union cabinet on Wednesday approved the restructuring and extension of the lending period of PM Street Vendors Atmanirbhar Nidhi (PM SVANidhi) Scheme. The scheme, having a total outlay of ₹7,332 crore, is likely to benefit 11.5 million people, including five million new beneficiaries.

 

According to a statement by the Press Information Bureau, implementation of the scheme would be jointly overseen by the Ministry of Housing & Urban Affairs (MoHUA) and the Department of Financial Services (DFS). DFS will also be responsible for facilitating access to loans and credit cards.

Key new features

Some of the key features of the restructured scheme include:

 

• Enhanced loan amount across the first and second tranches
• Revised loan structure:

1st tranche: ₹15,000 (up from ₹10,000

2nd tranche: ₹25,000 (up from ₹20,000)

• UPI-linked RuPay credit card after repayment of the second loan
• Digital cashback incentives of up to ₹1,600 on retail and wholesale digital transactions
• Capacity building of street vendors with a focus on entrepreneurship, financial literacy, digital skills, and marketing

Scheme to support street vendors

The PM SVANidhi Scheme was launched on June 1, 2020, to support street vendors who faced hardships during the Covid-19 pandemic. Apart from providing financial support, the scheme has also offered the business segment a sense of identity and formal recognition for their contribution to the economy, the PIB statement mentioned. 

 

Under the scheme, over 9.6 million loans worth ₹13,797 crore were disbursed to over 6.8 million street vendors as of July 30. Nearly 4.7 million digitally active beneficiaries have conducted digital transactions worth ₹6.09 trillion, earning a total cashback of ₹241 crore.

 

The extension of the scheme is likely to help street vendors by offering a reliable source of finance to support business expansion and opportunities for sustainable growth. “This will not only empower street vendors but will also foster inclusive economic growth, socio-economic upliftment of street vendors and their families, enhancing their livelihoods, and transforming urban spaces into a self-sustaining ecosystem,” the statement reads.