August 3, 2025

In a significant move to uplift street vendors, the Government of India has approved an expansion of the PM Street Vendor's AtmaNirbhar Nidhi (SVANidhi) scheme. Under this initiative, the government will offer higher subsidized loans to vendors and extend the scheme's coverage to approximately 50 lakh more beneficiaries. Recent reports from the Times of India (TOI) have shed light on the government’s decisions made on Thursday regarding this revamping of the scheme. The proposal includes raising the loan amounts for the first two terms. Previously, beneficiaries could receive subsidized loans of Rs 10,000 and Rs 20,000 for these terms, respectively. This has now increased to Rs 15,000 and Rs 25,000. The amount available for the third-term loan remains steady at Rs 50,000. Eligible beneficiaries will continue to receive an interest subsidy of 7%, which can significantly lessen the financial burden on street vendors as they strive to grow their businesses. An exciting new feature approved in this phase is the introduction of UPI-linked credit cards, with a maximum limit of Rs 30,000. This credit card is specifically aimed at those beneficiaries who have successfully repaid the first two loans, which will enable more than 11 lakh vendors to access additional working capital tailored for their operational needs. This added financial facility is expected to enhance the overall credit ratings for these vendors, allowing them to take on more capital and instilling greater financial confidence. According to officials, the terms for repayment will be established by banks, providing the vendors with clear repayment plans tailored to their capabilities. The Ministry of Housing and Urban Affairs reports that to date, over 68 lakh street vendors have successfully availed the initial term loans. Of these, about 38.4 lakh have managed to repay their loans, demonstrating the program's effectiveness in supporting street vendors amid economic uncertainties. The PM SVANidhi scheme was first launched to help street vendors who have suffered losses in their businesses, particularly during the pandemic. By providing affordable loans, the initiative aims to create a sustainable livelihood for these vendors and help them reestablish their businesses. With the expanded reach of the scheme, the government aims to reduce the financial struggles of street vendors and strengthen the informal economy. This enhancement of the PM SVANidhi scheme reflects the government’s continued efforts to support the livelihoods of millions of street vendors across the country. By increasing the availability of financial resources and improving the terms of repayments, it lays the foundation for long-term financial independence and empowerment for these vendors. Experts and financial analysts believe that accessible financing options can be a game-changer for street vendors who often lack substantial credit history. The new credit cube can open doors to better opportunities and growth, encouraging entrepreneurship among the vendors. Increased financial stability can enable them to not only sustain their businesses but also expand into new areas. This strategic initiative is likely to foster strong economic growth among informal sectors and contribute to India's overall economic recovery post-pandemic. As the government continues to prioritize the needs of street vendors, it is anticipated that the revival of their businesses will stimulate local economies and create job opportunities across various regions. In conclusion, the government’s expansion of PM SVANidhi marks a significant step toward empowering street vendors by providing them with the necessary financial tools to rebuild and thrive in a competitive marketplace. It reinforces the commitment to inclusivity and economic support for all sections of society, particularly those who are often overlooked in traditional financial setups.

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Tags: Pm svanidhi, Street vendors, Subsidized loans, Credit cards, Government scheme,