PM Svanidhi Scheme Extended Until 2030: Loan Limit Raised, Street Vendors To Get Credit Card- All You Need To Know

(MENAFN- Live Mint) The Union Cabinet on Wednesday cleared the restructuring and extension of the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme until March 31, 2030.

Earlier, the lending period was until December 31, 2024.

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With a total outlay of ₹7,332 crore, the scheme“aims to benefit 1.15 crore beneficiaries including 50 lakh new beneficiaries,” an official statement said.

The key features of the PM SVANidhi scheme include enhanced loan amount across first and second tranches, provision of UPI-linked RuPay Credit Card for beneficiaries who have repaid the second loan, and digital cashback incentives for retail & wholesale transactions.

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, it said.

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.

The scheme will be jointly implemented by the Union Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services, with DFS being responsible for facilitating access to loan/credit cards through banks/financial institutions and their ground-level functionaries.

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As per the scheme, the street vendors can avail cashback incentives of upto ₹1,600 on making retail and wholesale transactions.

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 trainings would be conducted for street food vendors, in partnership with FSSAI,” the statement said.

The government had launched the PM SVANidhi scheme on June 1, 2020 to support street vendors who faced unprecedented hardships during the Covid-19 pandemic.

“The extension of the scheme envisages the holistic development of street vendors by offering a reliable source of finance to support business expansion and opportunities for sustainable growth,” the statement said.“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 ultimately transforming urban spaces into a vibrant, self-sustaining ecosystem.”

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