PM SVANidhi Scheme: Good news for everyone. The Union Cabinet has approved the extension of the Pradhan Mantri Svanidhi Scheme (PM SVANidhi) till March 2030. Along with this, the government has also approved a budgetary provision of Rs 7,332 crore for this scheme. The main objective of this scheme is to provide financial assistance to street vendors and small handcart traders across the country, so that they can take their business forward and become self-reliant.
Let us tell you that this decision of the government will directly benefit 1.15 crore beneficiaries. Under the new decision, a total of 1.15 crore beneficiaries will now be covered under the Pradhan Mantri Swanidhi Yojana, which will also include about 50 lakh new street vendors. Features like increased loan limit, UPI-linked RuPay credit card and digital cashback incentives have been added in this revised scheme to encourage small traders to adopt digital payments.
What is the new credit structure?
As per the new credit structure, the first installment loan will now be Rs 5,000 (earlier Rs 10,000), the second installment loan will be Rs 25,000 (earlier Rs 20,000) and the third installment loan will remain Rs 50,000 as before. Apart from this, street vendors who repay their second installment loan on time will be given UPI-linked RuPay credit cards, which will provide them instant credit for business and personal needs. A cashback incentive of up to Rs 1,600 will also be given on digital retail and wholesale transactions.
The government believes that this scheme will not only empower small traders but will also play an important role in promoting the digital economy. Also, the cashback incentive of up to Rs 1,600 will further strengthen the habit of digital payment. This decision will provide stable livelihood and economic security to lakhs of street vendors and will also promote employment and self-reliance at the local level.