Union Cabinet Approves Revamp of PM SVANidhi Scheme

Current Context: On August 27, 2025, the Union Cabinet approved the restructuring and extension of the Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme till March 31, 2030, with a total outlay of ₹7,332 crore.

• The revamped scheme aims to benefit 1.15 crore street vendors, including 50 lakh new beneficiaries, by enhancing access to credit, digital tools, and welfare schemes.

Revised Loan Limits:

• ₹15,000 for the first loan (earlier ₹10,000)
• ₹25,000 for the second loan (earlier ₹20,000)
• ₹50,000 for the third loan (unchanged)

Highlights:

• RuPay Credit Card via UPI: Vendors who repay the second loan on time will be eligible for a RuPay credit card, linked to UPI.
• Digital Cashback Incentives: To promote digital payments, vendors can earn up to ₹1,600 in cashback for regular retail and wholesale transactions.
• Coverage expanded to census towns and peri-urban areas beyond statutory towns.
• Skill training in entrepreneurship, digital literacy, marketing, and hygiene (via FSSAI for food vendors).

Question:

Q.1 What is the loan limit for the second loan cycle under the restructured Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme?
a) ₹15,000
b) ₹20,000
c) ₹25,000
d) ₹30,000

Answer: c) The second loan limit has been raised from ₹20,000 to ₹25,000.