PM SVANidhi Yojana: This scheme will benefit the people living on the tracks, they will get loan without guarantee

PM SVANidhi Yojana: The Government of India has taken an important step towards making street vendors self-reliant. The Pradhan Mantri Street Vendors Atmanirbhar Nidhi Yojana (PM SVANidhi) has now been extended from the deadline of 31 December 2024 to 2030. This decision will directly benefit lakhs of small shopkeepers, cart pushers and pavement shopkeepers across the country. Many beneficial provisions like loan without any guarantee, cashback on digital payment, and skill development have been included under this scheme.

What is PM SVANidhi Yojana?

In view of the economic crisis faced by street vendors during the COVID-19 pandemic, the government launched the PM SVANidhi scheme in 2020. The objective of this scheme was to provide cheap loans without guarantee to small businessmen so that they can restart and grow their business. Initially, a loan of up to Rs 10,000 was given under this scheme, after repaying which the vendors got the facility to take a loan of more amount.

Major changes made in the scheme

Recently, the central government has restructured this scheme to make it more effective. Now many new benefits have been added along with the increase in the loan amount, which can prove to be a game-changer for street vendors. The new changes are as follows:

Increase in loan amount:

First loan: Rs 15,000

Second loan: Rs 25,000

Third loan: Rs 50,000

UPI-linked RuPay credit card:

Vendors who have taken a second loan will now be provided with a UPI-linked RuPay credit card. This credit card will provide instant funds for emergency needs.

Cashback on digital payments:

To promote digital transactions, the government will give cashback of up to Rs 1600 every month to vendors making payments through QR code.

Expansion of the scheme: 50 lakh new beneficiaries

The government has increased the budget of PM SVANidhi scheme to Rs 7332 crore. Under this expansion, 50 lakh new street vendors will be added to the scheme. After this, the total number of beneficiaries will increase to 1.15 crores. This step is a big effort towards empowering small businessmen economically and socially.

Not only loan, skills and training too

PM SVANidhi scheme is not limited to financial assistance only. The government will also provide training in entrepreneurship, financial literacy, and digital skills to street vendors under this scheme. Apart from this, vendors will be made aware of food safety and hygiene standards through partnership with FSSAI (Food Safety and Standards Authority of India). This will ensure that they can run their business in a more professional and safe manner.

New future for street vendors

The expansion of PM SVANidhi scheme and its new provisions have brought a new hope for street vendors. Through unsecured loans, incentives for digital payments, and skill development, the government is not only empowering these small entrepreneurs economically, but also giving them an opportunity to make a significant contribution towards building a self-reliant India.