Context:
The Union Government has approved the second phase of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme with enhanced loan limits and the introduction of UPI-linked credit cards to deepen financial inclusion for urban street vendors.
Key Highlights:
- Expanded Coverage:
- The revamped scheme will cover 50 lakh more beneficiaries, in addition to the already existing street vendors.
- Enhanced Loan Amounts:
- First loan: Increased from ₹10,000 to ₹15,000
- Second loan: Increased from ₹20,000 to ₹25,000
- Third loan: Unchanged at ₹50,000
- All loans continue to carry an interest subsidy of 7%.
- UPI-Linked Credit Cards Introduced:
- Approved for 11 lakh street vendors who have successfully repaid the first two loans.
- These cards will have a limit of ₹30,000, enabling vendors to access rolling working capital through digital payments.
- Banks will frame repayment rules for the credit card facility.
- Improved Financial Behaviour:
- Out of over 68 lakh street vendors who took the initial ₹10,000 loan, around 38.4 lakh have repaid, indicating growing credit discipline.
- Objective of Reforms:
- The changes aim to boost creditworthiness, formalisation, and digital financial access among street vendors.
- Helps build confidence and improve capital availability for micro urban entrepreneurship.
