Current Context: The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme completed one year of its restructured phase on 27 August 2026. The Union Cabinet had approved restructuring of the scheme on 27 August 2025, extending its lending period up to 31 March 2030.
Key Points:
- PM SVANidhi was originally launched on 1 June 2020 to provide collateral-free working capital loans to urban street vendors who often have limited access to formal banking credit.
- The revamped scheme focuses not only on collateral-free credit for street vendors but also on digital payments, formal financial inclusion, social security, entrepreneurship and livelihood expansion.
- Under the restructured scheme, the lending period has been extended up to 31 March 2030, with a total approved outlay of ₹7,332 crore.
- The restructured PM SVANidhi aims to benefit around 1.15 crore street vendors, including 50 lakh new beneficiaries.
- During the first year after restructuring, around 21.86 lakh loans worth approximately ₹6,294 crore were disbursed to 10.56 lakh new beneficiaries.
- The revised scheme provides working-capital loans in progressive tranches. The first loan limit was increased from ₹10,000 to ₹15,000, while the second loan limit was increased from ₹20,000 to ₹25,000. The third tranche can go up to ₹50,000.
- An important new feature is an UPI-linked RuPay Credit Card for eligible street vendors who demonstrate good repayment behaviour. The card provides a credit limit of up to ₹30,000, helping vendors access formal revolving credit rather than depending on informal moneylenders.
- The scheme promotes digital transactions by encouraging vendors to use UPI and other digital-payment methods. Digital cashback incentives are also used to increase adoption of cashless transactions.
- Coverage of PM SVANidhi is being expanded beyond statutory towns to include Census Towns and peri-urban areas, increasing access to formal credit for a larger number of street vendors.
- Implementation of the scheme is a joint responsibility of the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS). DFS helps facilitate access to loans and credit cards through banks and other financial institutions.
- The restructured scheme also focuses on financial literacy, entrepreneurship, digital skills, marketing and social-security linkages, making PM SVANidhi broader than just a micro-credit programme.
- Since its launch in 2020, PM SVANidhi has become an important instrument of financial inclusion for India's informal urban workforce, helping street vendors develop a formal credit history and gradually integrate with the banking system.
Question
Q1. Under the restructured PM SVANidhi Scheme, the lending period has been extended up to which date?a) 31 March 2027
b) 31 March 2028
c) 31 March 2029
d) 31 March 2030
Answer: d) The Union Cabinet approved restructuring of PM SVANidhi on 27 August 2025 and extended its lending period up to 31 March 2030.
