PM SVANidhi Scheme Expands to Rural and Semi-Urban Areas

President Droupadi Murmu announced the expansion of the PM SVANidhi scheme to include rural and semi-urban street vendors. Initially launched in 2020, the scheme provides collateral-free loans to urban street vendors. As of December 2023, Rs 9,790 crore has been disbursed to over 56 lakh vendors.

In a significant policy move, President Droupadi Murmu declared on Thursday that the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme will soon cover street vendors in rural and semi-urban regions. This development aims to extend the benefits of the scheme beyond urban areas.

Initially launched by the Modi government during the COVID-19 outbreak in 2020, PM SVANidhi is a micro-credit initiative that offers collateral-free loans of up to Rs 50,000 to urban street vendors. Addressing Parliament for the first time after the 18th Lok Sabha's constitution, President Murmu emphasized the broader reach of the scheme, laying groundwork for inclusive economic growth.

The Union housing and urban affairs (HUA) Minister Hardeep Singh Puri disclosed that loans totaling Rs 9,790 crore have already been disbursed to PM SVANidhi beneficiaries. With over 56 lakh vendors benefitting from the initiative as of December 2023, this figure is set to rise with the scheme's expanded scope. The loans are dispensed in three tranches—Rs 10,000, Rs 20,000, and Rs 50,000—based on prior repayments.