What is PM SVANidhi Scheme?
The PM SVANidhi Scheme (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) is a government-backed micro-credit initiative launched by the Ministry of Housing and Urban Affairs (MoHUA) to support street vendors across India. The scheme provides collateral-free working capital loans to small vendors affected by financial disruptions, helping them restart or expand their businesses with easier access to formal credit.
Under the PM SVANidhi Yojana, eligible vendors can initially avail a loan of up to ₹10,000 with the opportunity to access higher loan amounts in subsequent cycles based on timely repayment. The scheme also offers interest subsidies and digital transaction cashback incentives to encourage financial inclusion and digital adoption among small businesses.
The primary objective of PM SVANidhi is to empower street vendors by improving their access to institutional finance, reducing dependency on informal lenders, and strengthening their long-term financial stability.
Features of PM SVANidhi Scheme
- To begin with, it is a Central Sector Scheme, meaning, they are funded directly by the central ministries.
- Any urban vendors as well as the ones working in the surrounding rural and semi-urban areas on or before March 24. 2020 will be eligible to apply for the loans.
- Initially a working capital of Rs. 10,000 will be provided.
- On timely or early repayment of which, the vendor shall be provided with an Interest Subsidy of 7%. Along with it, those vendors will also be granted higher loan amounts in the preceding transactions.
- To promote Make in India and Digital Transactions, the vendors shall be provided with monthly cash back incentives. These cashback ranges from Rs. 50 to Rs 100.
- The loans are completely collateral-free.
Objectives of PM SVANidhi Scheme
To unleash its full capacities, these loans are kept simple with profitable and helpful objectives that reach the masses and are easily understandable. The potentials of these loans are so much so that it cannot just help the ones in need but also secure their near future and implement the use of technology.
- Working capital loan: the prime objective of this scheme is to provide a working capital loan of Rs. 10,000 at subsidized rates of interest to anyone and everyone eligible.
- Digital Transactions are rewarded: this creates an awareness, helps to maintain safety protocols in the times of a virus outbreak, brings everyone to the same platform and at the same time rewards the vendors with cashback that helps them financially and encourages the small vendors across India of the country to take a step towards Digitalization.
- Incentivize regular loan repayment: the lives of daily wagers are not easy, taking a loan may help their situations but repaying those same becomes a nightmare in their lives. Incentivizing the timely loan repayment encourages them morally and at the same time makes the process a lot easier, beneficial and cost-efficient.
List of Lending Institutions
To reach the general masses, banks have been chosen wisely and specifically. Here’s a list of all the lending institutions partnered with the scheme:
- Scheduled Commercial Banks
- Small Finance Banks (SFBs)
- Regional Rural Banks (RRBs)
- Cooperative Banks
- Self-help group Banks (SHG)
- Micro Finance Institutions (MFIs)
- Non-Banking Financial Companies (NBFCs)
PM SVANidhi Eligibility Criteria
Although the loan is available for all the street vendors active on and before 24th March, 2020, here’s a list of criteria that identifies the eligible candidates:
- Only the street vendors recognized by the ULBs or Urban Local Bodies and/or the ones possessing the Certificate of Vending or ULB issued Identity card.
- The Vendors who have been recognized in the survey but haven’t received a Certificate or Identity card will be provided with a Provisional Certificate of Vending. As per the Government’s request, those vendors will be provided with permanent identification cards by the ULBs with immediacy.
- Those street vendors without the above-mentioned identification can also become eligible by having issued a Letter of Recommendation (LoR) by the ULB or TVC (Town Vending Committee)
- The vendors residing and active in the surrounding peri-urban or rural areas can also become eligible by having the same letter of recommendation by ULB or TVC
- ULB/TVC Verified vendors who left their area of operation due to COVID-19 (prior to or during) will be eligible for the loan after they come back and resume their businesses.
Rate of Interest
| Lending Institution | Rate of Interest |
| Scheduled Commercial BanksRegional Rural Banks (RRBs)Small Finance Banks (SFBs)Co-operative BanksSelf-Help Group Banks (SHG) | As per their prevailing rates of interest |
| Non-Banking Financial Companies (NBFCNon-Banking Financial Companies – Microfinance Institutions (NBFC-MFI) | Interest rates as directed by the RBI for respective category of the lender |
| Micro Finance Institutions (Non-NBFC) | Interest rate same as directed by RBI for NBFC-MFIs |
Interest Subsidy
Every financial year is divided quarterly and each quarter ends on June 30, September 30, December 31 and March 31. On these mentioned days, the lenders will have to submit claims for the interest subsidies and all the vendors availing the loan under SVANidhi Scheme will become eligible for a 7% interest subsidy which then will be transferred directly to their bank’s account. However, here are certain points that one will need to keep in mind:
- In case of early repayment, the subsidy shall be credited to the borrower’s account in one go.
- The subsidy will be available till 31st March, 2022 and on the first and thereafter subsequent amplified loans till the given date.
- The subsidy will only be accepted in respect of Standard (non-NPA) accounts of the borrowers and only in the months of the concerned quarters where the account remains Standard.
Who Can Apply Under PM SVANidhi Scheme?
The PM SVANidhi Scheme is designed specifically for street vendors engaged in small-scale vending activities in urban, peri-urban, and surrounding rural areas. Vendors selling vegetables, fruits, street food, garments, handicrafts, tea, snacks, or other daily-use products can apply for the scheme if they meet the eligibility conditions.
Eligible applicants generally include:
- Street vendors identified in urban local body (ULB) surveys
- Vendors possessing a Certificate of Vending or Identity Card issued by local authorities
- Vendors who were operating on or before the prescribed eligibility date
- Small hawkers, cart vendors, and roadside sellers in nearby peri-urban or rural areas
- Vendors who temporarily migrated during difficult periods and later resumed vending activities
Applicants without official vending certificates may still qualify through a Letter of Recommendation (LoR) issued by the Urban Local Body or Town Vending Committee (TVC). The scheme aims to ensure that genuine small vendors can access affordable credit without complex documentation or collateral requirements.
How to Apply for PM SVANidhi Scheme Online
To apply for loans under SVANidhi Scheme, all the eligible street vendors need to address a Banking Correspondent or any Agent of MFIs of their areas. Common Service Centre (CSC) built up that helps the vendors all throughout the application process. The ULBs have a list of all the identified street vendors and this personnel will guide the registered/ identified vendors in accordance with the lists through the application process.
There are two ways for applying, one through the mobile app and another through the portal – https://pmsvanidhi.mohua.gov.in/. One can apply directly or with the help of the above-mentioned assisting bodies. It is important for one to check and verify the status of their eligibility before approaching any facilities to avoid crowds during the pandemic.
Step-by-Step PM SVANidhi Registration Process
Applying for the PM SVANidhi Scheme is a simple process designed to help street vendors access loans quickly with minimal paperwork. Eligible applicants can apply online through the official PM SVANidhi portal or with assistance from Common Service Centres (CSCs), banks, or microfinance institutions.
Step 1: Verify Eligibility
Check whether you possess a Certificate of Vending, Identity Card, or Letter of Recommendation issued by the Urban Local Body (ULB) or Town Vending Committee.
Step 2: Gather Required Documents
Keep essential documents ready, including Aadhaar Card, mobile number, bank account details, identity proof, and vending-related documents.
Step 3: Visit the Official Portal
Access the official PM SVANidhi portal and choose the loan application option suitable for your loan cycle.
Step 4: Fill Out the Application Form
Enter personal details, business information, Aadhaar details, and bank account information accurately to avoid delays during verification.
Step 5: Upload Documents
Submit scanned copies of the required documents and complete the verification process through OTP authentication if applicable.
Step 6: Loan Verification and Approval
The application is reviewed by the lending institution and local authorities. Once verified, the loan amount is sanctioned and transferred directly to the applicant’s bank account.
Step 7: Maintain Timely Repayment
Regular repayment helps vendors become eligible for higher loan amounts, interest subsidies, and digital cashback rewards under future loan cycles.
Documents Required for Application
For easier accessibility, the documents required for applying for this loan are kept very simple and hassle-free. Here’s the list of documents you’ll be needing during the application process:
- Certificate of Vending/ Identity card/ Letter of Recommendation issued and verified by the ULB or TVC
- Identity Proof and Address Proof by any one of the following:
- Aadhaar Card
- Voter Id
- Ration Card
- Driving License
- PAN Card
- MNREGA Card
Why choose SVANidhi Scheme?
Starting a business is comparatively easier than restarting one. The recent conditions due to the pandemic have left the industries shattered and disintegrated. But at the same time, there’s a huge need for essential materials arising as well.
This calls for new opportunities and bigger growing spaces. With the working capital loans provided by PM SVANidhi Scheme, the street vendors get the financial support to re-start their businesses and flourish in the market. These loans, which by now we know, are rewarding, beneficial, cost-efficient and let the vendors resume their lives on a positive and tension-free note.
If we look at the numbers, a total of 41,66,224 applications have been submitted among which 24,05,408 have been sanctioned. The total amount disbursed is 20,52,432.
Therefore, it can be assured that this scheme is, with time and due course, reaching the right masses in the right possible way.
Frequently Asked Question
- What is the PM SVANidhi Scheme and how does it work?
PM SVANidhi (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) is a government scheme that provides collateral-free working capital loans to street vendors. Eligible vendors can access small business loans, interest subsidies, and digital transaction rewards to restart or expand their businesses.
- Who is eligible to apply for the PM SVANidhi loan?
Street vendors engaged in vending activities on or before the prescribed eligibility date can apply. This includes vendors with a Certificate of Vending, Identity Card, or Letter of Recommendation issued by Urban Local Bodies (ULBs) or Town Vending Committees (TVCs).
- What is the maximum loan amount available under PM SVANidhi Scheme?
The scheme initially offers a working capital loan of up to ₹10,000. Vendors who repay on time may become eligible for higher loan amounts in future loan cycles.
- Is collateral required for PM SVANidhi loans?
No. PM SVANidhi loans are completely collateral-free, which means vendors do not need to provide any security or guarantor to avail the loan.
- What documents are required for PM SVANidhi registration?
Applicants generally need Aadhaar Card, mobile number, bank account details, identity proof, and vending-related documents such as Certificate of Vending, Identity Card, or Letter of Recommendation.
- How can street vendors apply for PM SVANidhi Scheme online?
Eligible vendors can apply through the official PM SVANidhi portal, Common Service Centres (CSCs), participating banks, or microfinance institutions by submitting the required documents and completing the verification process.
Can vendors without a Certificate of Vending apply for PM SVANidhi?
Yes. Vendors without a Certificate of Vending may still apply if they obtain a Letter of Recommendation (LoR) from the Urban Local Body or Town Vending Committee.
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