PM SVANIDHI Yojana

 Launch: Launched on 1 June 2020 to provide collateral-free working-capital loans to street vendors affected by the COVID-19 pandemic.

• Ministry: Implemented by the Ministry of Housing & Urban Affairs (MoHUA), with the Department of Financial Services facilitating credit access through banks and financial institutions.
• Target Beneficiaries: Primarily street vendors, including eligible vendors from peri-urban areas as the scheme has been expanded beyond statutory urban areas in a phased manner.
• Loan Structure: The restructured scheme provides progressive collateral-free loans of ₹15,000 → ₹25,000 → ₹50,000 in three tranches.
• Repayment Period: First, second and third tranches are repayable over 12, 18 and 36 months, respectively.
• Interest Subsidy: Timely repayment attracts an interest subsidy, supporting affordable formal credit.
• Digital Incentive: The scheme incentivises vendors to adopt digital payments through cashback incentives.
• UPI-Linked Credit Card: Under the restructured scheme, eligible vendors who successfully repay the second tranche can access a UPI-linked RuPay Credit Card with a limit up to ₹30,000.
• SVANidhi se Samriddhi: Launched on 4 January 2021, it seeks to provide a social-security net to beneficiaries and their families by linking them with selected Central Government welfare schemes.
• Restructuring: In August 2025, the Union Cabinet restructured the scheme and extended the lending period up to 31 March 2030.
• Financial Outlay: The restructured scheme has a total outlay of ₹7,332 crore and aims to benefit 1.15 crore street vendors, including 50 lakh new beneficiaries.
• Geographical Expansion: Coverage is being expanded in a phased manner to census towns, urban agglomerations and peri-urban areas.

Prelims Question — English

Q. With reference to PM SVANidhi, consider the following statements:

1. It is implemented by the Ministry of Housing and Urban Affairs.
2. It provides collateral-free working-capital loans to street vendors.
3. The restructured scheme provides loans in three progressive tranches of ₹15,000, ₹25,000 and ₹50,000.
4. It has been extended up to March 2030.

Which of the statements given above are correct?

A. 1 and 2 only
B. 1, 2 and 3 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4

Answer: D

Explanation

All four statements are correct. PM SVANidhi is a MoHUA scheme providing collateral-free working-capital loans to street vendors. After restructuring, the three loan tranches were enhanced to ₹15,000, ₹25,000 and ₹50,000, and the lending period has been extended up to 31 March 2030.