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Union Cabinet, led by Prime Minister Narendra Modi, has approved a major restructuring and extension of the scheme until March 31, 2030, with a total outlay of ₹7,332 crore.
 
About PM SVANidhi
The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme is a central sector initiative launched in June 2020 to provide affordable, collateral-free working capital loans to street vendors affected by the COVID-19 pandemic.
 
Features of PM SVANidhi:

• Collateral-free working capital loans up to ₹15,000 in the first tranche, ₹25,000 in the second, and up to ₹50,000 in the third tranche.
• Loans provided for a tenure of one year, with no moratorium period.
• Interest subsidy of 7% per annum for timely or early repayment.
• Digital cashback incentives up to ₹1,200 annually to promote digital transactions.
• Provision of UPI-linked RuPay Credit Cards to beneficiaries who repay loans timely.
• Expanded coverage from statutory urban towns to census towns, peri-urban, and rural areas.
• Capacity building through training in entrepreneurship, financial literacy, digital skills, and food safety.
• No collateral or processing fees required.
• Repayment in equal monthly installments.
• Scheme extended till March 31, 2030, with a total outlay of ₹7,332 crore.

Benefits of PM SVANidhi:

• Provides street vendors access to affordable credit for resuming and expanding their businesses.
• Enhances financial inclusion by bringing vendors into the formal banking system.
• Encourages digital payments, gradually integrating vendors into the digital economy.
• Promotes regular loan repayment through interest subsidies and cashback rewards.
• Supports socio-economic development and dignity for vendors by reducing dependence on informal and usurious credit sources.
• Helps preserve livelihoods and boosts economic activity in urban and surrounding areas.

Achievements of PM SVANidhi:

• Over 6.5 million street vendors benefited from loans aggregating over ₹12,739 crore.
• More than 80 lakh loans disbursed, significantly aiding recovery post-pandemic economic disruption.
• Digital payment adoption among street vendors has increased substantially.
• Formalization of street vending has led to better legal recognition, reducing harassment and conflicts.
• The scheme has garnered recognition for financial inclusion and empowerment of a traditionally marginalized workforce.
• Mega camps and targeted outreach have expanded participation, including special focus on women and food vendors.

Despite challenges like urban governance issues and rural manpower shifts, PM SVANidhi has been pivotal in reviving street vending, fostering digital finance, and augmenting livelihoods in the informal sector.

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