PM Svanidhi Yojana Update: The central government has launched a beneficial scheme for small traders and street vendors across the country. This scheme is called the PM Svanidhi Yojana. It was introduced by the Prime Minister in 2020 to help small traders restart their businesses during the lockdown. Now, new benefits have been added to this scheme.
A credit card worth Rs 30,000 has been introduced under this scheme. Finance Minister Nirmala Sitharaman announced this new facility in the 2025 budget. With this credit card, small traders can borrow money on easy terms to meet their essential needs.
What is PM SVANIDHI Yojana?
PM SVANIDHI Yojana is a micro-credit scheme that provides easy loans to small traders, hawkers, and street vendors across the country. This scheme is designed to support those who run small shops or earn a living by selling on the streets. According to a government report, 94.31 lakh loans have been disbursed through this scheme so far, with a total value of Rs 13,422 crore.
How to Get a Loan?
The loan facility under this scheme is available in three stages:
First Stage: You can get a loan of up to Rs 10,000.
Second Stage: If you repay the loan on time, you can get a loan of up to Rs 20,000.
Third Stage: With a good repayment history, you can get a loan of up to Rs 50,000.
If you repay the loan on time, you will receive a 7% interest subsidy and an additional cashback of Rs 1,200 annually. Previously, cash loans were provided under this scheme, but now a UPI-linked credit card of Rs 30,000 will be issued to enable digital transactions.
Who Can Apply?
The scheme is open to any street vendor, small trader, shopkeeper, or hawker. To apply, you will need to submit one of the following documents:
- Aadhaar card
- Voter ID card
- PAN card
- Driving license
What Are the Benefits for Common People?
The benefits of PM SVANIDHI Yojana for the common man include:
- No requirement for guarantees from large banks, with loans available on easy terms.
- Cashback and a 7% subsidy on interest if the loan is repaid on time.
- The addition of a credit card facility to simplify digital transactions.
- A step-by-step increase in loan amounts if the borrower repays on time.
In Conclusion we can Say, PM SVANIDHI Yojana is a wonderful initiative that helps millions of small traders and street vendors. With the introduction of the UPI-linked credit card of Rs 30,000, digital transactions are now easier than ever. If you are a small trader, don’t miss out—apply for this scheme today.