PM SVANidhi Yojana: The Central Government’s Pradhan Mantri Street Vendor Atmanirbhar Nidhi Yojana (PM SVANidhi Yojana) is a major financial empowerment tool for street vendors across the country. In the last Union Budget, the government made a significant announcement of providing UPI-linked RuPay credit cards under this scheme, with a limit of up to ₹30, 000.
This unprecedented facility will enable street vendors to access instant loans to meet unexpected business and personal needs. Additionally, they will also receive cashback incentives of up to ₹1, 600 on retail and wholesale transactions. This Google Search-friendly content will provide you with complete information about this powerful scheme and its new changes.
What is the PM SVANidhi Yojana
The PM SVANidhi Yojana was launched specifically to help street vendors cope with the economic shock during the COVID-19 pandemic. The main objective of this scheme is to provide working capital loans to small vendors on easy terms, enabling them to continue their businesses smoothly.
The scheme is valid until March 31, 2030, providing long-term financial security to vendors. Previously, the first installment under this scheme was ₹10, 000, which was increased to ₹15, 000 last August. Similarly, the second installment, which was initially ₹20, 000, has been increased to ₹25, 000. The third installment has been retained at ₹50, 000.
Major Changes in August
Last August, the government restructured the scheme, making it more inclusive. The total outlay for the scheme was increased to ₹7, 332 crore. The restructured scheme aims to benefit 11.5 million beneficiaries, including 5 million new beneficiaries.
The Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS) are jointly implementing the scheme at the grassroots level. The DFS’s primary role is to facilitate access to loans and credit cards through banks and financial institutions.
Key features of the new changes
- The loan amount for the first and second installments has been significantly increased.
- Beneficiaries who successfully repay the second installment will be provided with a credit card with a limit of ₹30, 000.
- Digital cashback incentives have been introduced for retail and wholesale transactions, offering benefits of up to ₹1, 600.
- The scope of the scheme is being expanded to Census Towns and Semi-Urban Areas in a phased manner.
- This UPI-linked credit card is an extremely powerful tool that provides cutting-edge digital services to street vendors and connects them with the mainstream economy.