PM SVANidhi Scheme
Kartavya Desk Staff
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.
Recent Restructuring (2025)
• 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).
• 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.