Previous Year Question
Which one of the following is the targeted group under the ‘Pradhan Mantri Swanidhi Scheme’?
Dairy farmers
Marginal farmers
Street vendors
Landless agricultural labourers
Correct Answer: C
Detailed Solution
The PM SVANidhi (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) Scheme was launched on 1 June 2020. Its principal target group consists of street vendors, whose livelihoods were adversely affected during the COVID-19 period.
A street vendor includes a person engaged in selling goods or providing services on streets, footpaths or pavements from a temporary structure or by moving from place to place. These may include fruit and vegetable vendors, ready-to-eat food sellers, tea vendors, barbers, cobblers and similar workers.
Under the original scheme, eligible street vendors were provided collateral-free working capital loans to restart their businesses. Initially, the maximum first-tranche loan was ₹10,000. A 7% interest subsidy was provided for timely repayment, along with cashback incentives to promote digital transactions.
Current Status (2026): PM SVANidhi was restructured in August 2025, and its lending period was extended up to 31 March 2030. The progressive loan tranches are now ₹15,000, ₹25,000 and ₹50,000. Eligible vendors who successfully repay the second tranche can also access a UPI-linked RuPay Credit Card of up to ₹30,000. The restructured scheme aims to benefit 1.15 crore beneficiaries, including 50 lakh new beneficiaries, and its coverage is being expanded in a graded manner beyond statutory towns to census towns and peri-urban areas.