The Union Cabinet has approved a significant restructuring and extension of the PM SVANidhi Scheme till March 2030, enhancing financial and digital access for over 1.15 crore street vendors. Launched in June 2020, the scheme aims to strengthen urban livelihoods and promote digital inclusion.
Key Changes in the Restructured PM SVANidhi Scheme
- Extended Lending Period and Total Outlay: The lending period is extended till March 31, 2030, with a total outlay of ₹7,332 crore.
- Enhanced Loan Amounts:
- First Tranche Loan increased from ₹10,000 to ₹15,000
- Second Tranche Loan increased from ₹20,000 to ₹25,000
- Third Tranche Loan remains at ₹50,000
- New Features to Boost Digital Financial Inclusion:
- Provision of UPI-linked RuPay Credit Cards for vendors
- Cashback incentives up to ₹1,600 annually on digital transactions
- Wider Coverage and Targeted Reach:
- Expansion beyond statutory towns to census towns and peri-urban areas
- Target support for 1.15 crore beneficiaries, including 50 lakh new entrants
Scheme Impact Since Launch
- Over 96 lakh loans disbursed
- ₹13,797 crore in credit distributed
- Financial support to 68 lakh+ vendors
- Crucial livelihood revival during and post-COVID
Key Takeaways for Competitive Exams
- The PM SVANidhi Scheme has been restructured and extended till March 2030 to provide financial and digital access to over 1.15 crore street vendors.
- Enhanced loan amounts and new features like UPI-linked RuPay Credit Cards aim to boost digital financial inclusion and support sustainable business growth.
- The scheme’s wider coverage now includes census towns and peri-urban areas, targeting 1.15 crore beneficiaries for formal credit access.
- Since its launch, the scheme has disbursed over 96 lakh loans, providing crucial financial support to vendors during and after the COVID-19 pandemic.
