Cabinet Approves Restructuring & Extension of Lending Period Beyond 31.12.2024 of PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) Scheme

The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has approved the restructuring and extension of the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme, extending the lending period until March 31, 2030. This decision is crucial for UPSC aspirants, particularly for GS Paper 2 and 3, as it highlights government initiatives for economic recovery and financial inclusion. Last Updated: 2025-08-29

Key Facts About PM SVANidhi Scheme

• Cabinet approved restructuring and extension of PM SVANidhi Scheme.
• Lending period extended until March 31, 2030.
• Benefits for 1.15 crore street vendors, including 50 lakh new beneficiaries.
• Total scheme outlay is ₹7,332 crore.
• Launched by MoHUA in 2020 to support street vendors.
• Provides working capital loans to help vendors restart businesses.
• Aims to promote financial inclusion and digital transactions.
• Interest subsidies on timely loan repayment.
• Offers cashback incentives for digital transactions.
• Increased loan amounts: ₹15,000, ₹25,000, and ₹50,000 for different tranches.
• UPI-linked RuPay Credit Card for beneficiaries.
• Coverage expanded to include census towns and peri-urban areas.
• Focus on capacity building in entrepreneurship and digital skills.
• 'SVANidhi se Samriddhi' component provides social security benefits.
• Over 96 lakh loans disbursed, totaling ₹13,797 crore.
• Scheme recognized with national awards for excellence.

India's Economic Recovery and Financial Inclusion

The restructuring and extension of the PM SVANidhi Scheme are pivotal in India's broader economic recovery post-Covid-19. By supporting street vendors, a crucial segment of the informal economy, the scheme aligns with India's strategic goals of enhancing financial inclusion and promoting digital transactions. With a significant outlay of ₹7,332 crore, the initiative also contributes to the growth of micro-entrepreneurship and the digital economy, positioning India favorably in global economic rankings.

Related Government Schemes/Policies

• Digital India: Promotes digital transactions and financial inclusion.
• AtmaNirbhar Bharat Abhiyan: Aims to make India self-reliant through various economic measures.
• Pradhan Mantri Jan Dhan Yojana: Focuses on financial inclusion by providing banking services to all.

UPSC Relevance

• GS Paper 2: Government policies and interventions for development in various sectors.
• GS Paper 3: Inclusive growth and issues arising from it.
• Prelims Angle: Questions on the scheme's launch year, objectives, and key features.
• Mains Angle: Analytical themes on financial inclusion, digital economy, and post-pandemic recovery.
• Essay Paper: Topics on economic resilience and self-reliance.

FAQ Section

• What is the PM SVANidhi Scheme? The PM SVANidhi Scheme is a government initiative launched in 2020 to provide working capital loans to street vendors, promoting financial inclusion and digital transactions.
• Why is the PM SVANidhi Scheme important? It supports 1.15 crore street vendors, fostering economic recovery post-Covid-19 by providing financial aid and promoting digital payments.
• What are the key features of the PM SVANidhi Scheme? The scheme offers loans up to ₹50,000, interest subsidies, cashback incentives for digital transactions, and a RuPay Credit Card linked to UPI for beneficiaries.