Cabinet extends PM SVANidhi for street vendors, enhances loan amount
The revamped scheme, which was a part of the Budget, will also give the vendors incentives of up to `1,600 cashback for retail and wholesale digital transactions.
The scheme was launched in 2020 as a part of the government’s economic package during the Covid-19 pandemic and lockdown. (File Photo) 
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The Union Cabinet Wednesday approved the restructuring of the PM SVANidhi loan scheme for street vendors, extending it till March 31, 2030 and enhancing the loan amount.
The scheme was launched in 2020 as a part of the government’s economic package during the Covid-19 pandemic and lockdown.
On Wednesday, the Cabinet, chaired by Prime Minister Narendra Modi, extended the lending period from December 31, 2024 to March 31, 2030, which is expected to benefit 1.15 crore beneficiaries, including 50 lakh new ones, a government statement said.
As per the statement, the first tranche was increased from Rs 10,000 to Rs 15,000 and the second tranche from Rs 20,000 to Rs 25,000. The third remains Rs 50,000. The scheme will be implemented by the Ministry of Housing and Urban Affairs and the Department of Financial Services, it said.
“The key features of the restructured scheme include enhanced loan amount across first and second tranche, provision of 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 graded manner,” the government said.
The scheme’s total outlay would be Rs 7,332 crore, it said. As of July 30, 96 lakh loans worth `13,797 crore have been disbursed to 68 lakh street vendors. Once vendors pay off the first tranche, they are eligible for the second and similarly, after the second tranche is repaid, they can avail of the third.
“The extension of the scheme envisages the holistic development of street vendors by offering a reliable source of finance to support business expansion and opportunities for sustainable growth. This will not only empower street vendors but will also foster inclusive economic growth, socio-economic upliftment of street vendors and their families enhancing their livelihoods, and ultimately transforming urban spaces into a vibrant, self-sustaining ecosystem,” the government said.
The revamped scheme, which was a part of the Budget, will also give the vendors incentives of up to `1,600 cashback for retail and wholesale digital transactions.
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