PM SVANidhi Scheme

Why in News:

The Union Cabinet has recently extended the PM SVANidhi scheme, Extending the lending period from December 31, 2024, to March 31, 2030.

Key Features of the Restructured Scheme :

• Aim: To benefit 1.15 crore beneficiaries, including 50 lakh new beneficiaries.
• Total Outlay: ₹7,332 crore.
• Implemented by: Ministry of Housing and Urban Affairs and the Department of Financial Services (DFS).
• The scheme also focuses on building the skills of street vendors by training them in entrepreneurship, financial literacy, and digital skills.

New Loan Structure :

Other Benefits :

• There is a provision of UPI-linked RuPay Credit Card for beneficiaries who have repaid the second loan.
• They can receive up to ₹1,600 in digital cashback for retail and wholesale transactions.
• Standard hygiene and food safety trainings would be conducted for street food vendors, in partnership with FSSAI.

‘SVANidhi se Samriddhi’ Component:

• This initiative aims to ensure that beneficiaries and their families receive all the benefits from various government schemes.
• It will be further strengthened through monthly Lok Kalyan Melas.

Important Facts :

• Originally, PM SVANidhi scheme was launched on June 1, 2020.
• The scheme has received several awards, including the Prime Minister’s Award for Excellence in Public Administration (2023) and the Silver Award for Excellence in Government Process Re-engineering for Digital Transformation (2022).

Significance of the Scheme

• It promotes entrepreneurship, financial literacy, and digital skills.
• It empowers street vendors and helps with inclusive economic growth and the social upliftment of vendors and their families.
• It provides vendors with access to quick loans for business and personal needs.
• Overall, the scheme improves people’s livelihoods and helps make urban areas more vibrant and self-reliant.