Source: NOA
Context: The Union Cabinet has approved restructuring of the PM SVANidhi Scheme with an extension of the lending period till 31 March 2030.
About PM SVANidhi Scheme:
What it is?
- PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) is a micro-credit scheme for urban street vendors.
- It provides affordable working capital loans to restore livelihoods disrupted during COVID-19.
Launched in
- June 1, 2020 by the Ministry of Housing and Urban Affairs (MoHUA).
Aims and Objectives
- Provide collateral-free working capital loans to street vendors.
- Promote digital payments and financial inclusion.
- Help vendors resume businesses post-pandemic and integrate with the formal economy.
- Encourage credit discipline by incentivising timely repayments.
Nodal Agency
- Implemented by the Ministry of Housing and Urban Affairs (MoHUA) with State/UT governments, Urban Local Bodies, and lending institutions.
Key Features (Original Framework)
- Initial Loan: ₹10,000 collateral-free loan (first tranche).
- Interest Subsidy: 7% per annum subsidy on timely repayment.
- Digital Incentives: Cashback of up to ₹100 per month for digital transactions.
- Credit Linkage: Higher loan tranches available on successful repayment.
- Target Beneficiaries: Street vendors in statutory towns, including those operating through carts, stalls, and footpaths.
- Extended Lending Period: Now valid till 31 March 2030 (earlier 31 Dec 2024).
- Enhanced Loan Amounts:
- 1st tranche: ₹15,000 (earlier ₹10,000).
- 2nd tranche: ₹25,000 (earlier ₹20,000).
- 3rd tranche: ₹50,000 (unchanged).
- UPI-linked RuPay Credit Card: For vendors repaying second tranche, providing instant access to credit for business and personal needs.
- Cashback Incentives: Vendors can earn up to ₹1,600 annually on retail/wholesale digital transactions.
- Expanded Coverage: Beyond statutory towns, now includes census towns and peri-urban areas.
- Scale of Beneficiaries: Aims to benefit 1.15 crore vendors, including 50 lakh new entrants.
