Govt Approves Higher Subsidised Loans for Street Vendors

In a significant move to support street vendors, the Indian government has approved higher subsidised loans under the second phase of the PM SVANidhi scheme. This initiative aims to bring around 50 lakh more beneficiaries under its ambit, offering them a financial lifeline.

UPI-Linked Credit Cards Introduced

Approximately 11 beneficiaries who have successfully repaid the first two tranches of subsidised loans will now be eligible for UPI-linked credit cards with a limit of Rs 30,000. This innovative step is designed to provide vendors with more rolling capital for their businesses, fostering financial confidence and stability.

Revised Loan Amounts and Interest Subsidies

Under the revamped scheme, beneficiaries will receive loans of Rs 15,000 and Rs 25,000 in the first two terms, an increase from the previous amounts of Rs 10,000 and Rs 20,000 respectively. The third-term loan remains at Rs 50,000, with an attractive interest subsidy of 7% for those availing the loans.

Encouraging Repayment and Financial Inclusion

With over 68 lakh street vendors availing the first-term loan and nearly 38.4 lakh repaying, the scheme demonstrates a strong commitment to financial inclusion. The introduction of credit cards is expected to further enhance access to capital, empowering vendors to grow their businesses.