About PM SVANidhi Scheme:
- It was initially launched on 1st June 2020 to support street vendors who faced unprecedented hardships during the COVID-19 pandemic.
- It is implemented jointly by the Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS), with DFS being responsible for facilitating access to loan/ credit cards through banks/financial institutions and their ground level functionaries.
Key facts about the Restructured PM SVANidhi Scheme
- The scheme’s coverage is being expanded beyond statutory towns to census towns, peri-urban areas
- 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.
- The introduction of UPI-linked RUPAY Credit Card would provide immediate access of credit to the street vendors in order to meet any emergent business and personal requirements.
- In order to give boost to digital adoption, the street vendors can avail cashback incentives up to ₹1,600 on making retail & wholesale transactions.
- The scheme also focuses on building the capacity of the street vendors with a focus on entrepreneurship, financial literacy, digital skills, and marketing through convergence.
- Standard hygiene and food safety training would be conducted for street food vendors, in partnership with FSSAI.
- In order to ensure holistic welfare & development of the street vendors and their families, the ‘SVANidhi se Samriddhi’ component will be further strengthened, through monthly Lok Kalyan Melas.
- Significance: It 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.
