Budget 2025: What is PM SVANidhi Scheme and what are the changes announced by FM Nirmala Sitharaman?

Finance Minister Nirmala Sitharaman announced several changes to the PM SVANidhi Scheme on Saturday while outlining the Budget. The initiative is a Special Micro-Credit Facility for providing affordable loans to street vendors — especially those who have been affected by the COVID-19 pandemic.

"PM SVANidhi Scheme has benefitted more than 68 lakh street vendors — giving them respite from high-interest informal sector loans. Building on this success the scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with ₹30,000 limit and capacity building support," Sitharaman announced.

What is the PM SVANidhi Scheme?

The Prime Minister Street Vendor's AtmaNirbhar Nidhi scheme or PM SVANidhi is an initiative launched by the Ministry of Housing and Urban Affairs. It provides affordable working capital loans to street vendors affected by the COVID-19 pandemic. — helping them resume their livelihoods and become self-reliant.

How does the PM SVANidhi Scheme work?

The scheme provides collateral-free working capital loans up to Rs. 10,000 for a 1-year tenure. Street vendors can get an interest subsidy at 7% per annum. Incentives are given to those who make timely repayment of loans with cashback upto ₹1200 per annum on undertaking prescribed digital transactions. Digital payment channels are encouraged to promote cashless transactions.

The scheme provides financial support to street vendors who have been engaged in vending for a period of one year or more. Applications have to be submitted through the official PM SVANidhi website.

Finance Minister Nirmala Sitharaman presented her eighth consecutive budget on Saturday — reiterating the government's push for a Viksit Bharat. The FM said that Budget 2025-26 will initiate reforms in six areas of taxation, urban development, mining, financial sector, power and regulatory framework.

She also asserted that the focus was to take everyone together on inclusive growth path. The proposed development measures will span 10 broad areas, focusing on 'garib' youth, 'anna daata' and 'nari', spurring agricultural growth and productivity, building rural prosperity and resilience.

(With inputs from agencies)