Street vendors scheme gets Cabinet nod for restructuring, lending period extension

The Union Cabinet on Wednesday approved the “restructuring and extension of the lending period beyond December 31, 2024, of Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme”. The lending period has now been extended until March 31, 2030. The total outlay for the scheme is Rs 7,332 crore.

The restructured scheme aims to benefit 1.15 crore beneficiaries, including 50 lakh new beneficiaries. Implementation of the scheme would be the joint responsibility of the Ministry of Housing and Urban Affairs (MoHUA) and Department of Financial Services (DFS). DFS will be responsible for facilitating access to loan/credit cards through banks/financial institutions and their ground-level functionaries.

The key features of the restructured scheme include an enhanced loan amount across the first and second tranches, provision of a UPI-linked RuPay credit card for beneficiaries who have repaid the second loan, and digital cashback incentives for retail and wholesale transactions. The scheme’s coverage is being expanded beyond statutory towns to census towns, peri-urban areas, etc., in a graded manner.

The enhanced loan structure includes first tranche loans increased up to Rs 15,000 (from Rs 10,000) and second tranche loans increased up to Rs 25,000 (from Rs 20,000), while the third tranche remains unchanged at Rs 50,000.

The introduction of a UPI-linked RuPay credit card would provide immediate access to credit for street vendors to meet any emergent business and personal requirements.