Syllabus:

GS-2: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections. 

Context: Recently, the Union Cabinet approved the restructuring and extension of the lending period of Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme.

More on the News

• As of July 2025, ₹13,797 crore has been disbursed through 96 lakh loans to 68 lakh vendors, with 47 lakh digitally active beneficiaries making over 557 crore transactions worth ₹6.09 lakh crore and earning ₹241 crore cashback.
• The scheme has an outlay of ₹7,332 crore, targeting 1.15 crore beneficiaries, including 50 lakh new ones by extending lending period until March 31, 2030. 
• The scheme won national recognition with the Prime Minister’s Award for Excellence in Public Administration (2023) for Innovation and the Silver Award (2022) for Digital Transformation. 

Features of the Restructured Scheme

• Key Aim: The scheme's extension aims to holistically develop street vendors by providing reliable finance for business growth, boosting livelihoods, and fostering inclusive, self-sustaining urban ecosystems.
• Implementation: The scheme would be the joint responsibility of Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS), with DFS responsible for enabling loan and credit access through banks and financial institutions.
• Enhanced Loan Structure: The enhanced loan structure includes first tranche loans increased up to ₹15,000 (from ₹10,000) and second tranche loans increased up to ₹25,000 (from ₹20,000), while the third tranche remains unchanged at ₹50,000. 
• UPI-linked RUPAY Credit Card: This would provide immediate access to credit to the street vendors to meet any emergent business and personal requirements. 
• Digital Adoption: To give a boost to digital adoption, the street vendors can avail cashback incentives up to ₹1,600 on making retail and wholesale transactions. 
• Coverage: The scheme is being expanded beyond statutory towns to census towns, peri-urban areas etc. in graded manner.
• Capacity Building: The scheme enhances vendors’ entrepreneurship, financial literacy, digital, and marketing skills, while street food vendors receive hygiene and food safety training in partnership with FSSAI.
• SVANidhi se Samriddhi: This component will be strengthened through monthly Lok Kalyan Melas to ensure full coverage of Government of India scheme benefits for beneficiaries and their families.

PM SVANidhi Scheme 

• PM SVANidhi is a central-sector micro-credit scheme launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA) to provide handholding support to street vendors.
• The scheme was launched to support street vendors who faced unprecedented hardships during the COVID-19 pandemic. 
• The scheme aims to formalize the street vendors and open up new opportunities for this sector to move up the economic ladder. 

• Facilitate collateral-free working capital loan.
• Incentivise regular repayment, through interest subsidy at 7% per annum
• Reward digital transactions, by way of annual cash back up to ₹1,200 ( 1600 in restructured scheme)

• Street vendors in possession of a Certificate of Vending / Identity Card issued by Urban Local Bodies. 
• The vendors, who have been identified in the survey but have not been issued a Certificate of Vending / Identity Card.
• Street Vendors left out of the ULB-led identification survey or who have started vending after completion of the survey and have been issued a Letter of Recommendation (LoR) to that effect by the ULB/Town Vending Committee (TVC).
• The vendors of surrounding development/peri-urban/rural areas vending in the geographical limits of the ULBs, who have been issued a Letter of Recommendation (LoR) to that effect by the ULB / TVC.

Sources: 
PIB
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