Finance Minister Nirmala Sitharaman, presenting the eighth consecutive Budget of Saturday, announced that the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with Rs 30,000 limit, and capacity building support.
She added that the scheme has helped 68 lakh street vendors so far.
What is the PM SVANidhi scheme?
Launched in June 2020, the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme provides micro-credit support to help street vendors recover from losses caused by the Covid-19 pandemic. Last year, the government extended the scheme’s duration until December 2024.
Under the scheme, street vendors can avail collateral-free working capital loans of up to Rs 80,000, with incentives such as a 7 per cent interest subsidy for regular repayments and a yearly cashback of up to Rs 1,200 for digital transactions. It supports vendors not just in cities but also in rural and peri-urban areas, driving inclusive economic development.
For all the latest developments on Union Budget 2025-26, click here
How does the scheme work?
The scheme utilises Aadhaar-based e-KYC for streamlined processes and employs an end-to-end IT platform with SMS-based notifications for real-time application status updates, according to the Ministry of Housing and Urban Affairs. All lending institutions, including NBFCs/MFIs and DPAs, are actively encouraged to participate, contributing to efforts aimed at alleviating urban poverty in India.
By July 17, 2024, the PM SVANidhi scheme had disbursed over 86 lakh loans amounting to more than Rs 11,680 crore, benefiting nearly 65 lakh street vendors across the country.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
