PM SVANidhi Scheme (PM Street Vendor’s AtmaNirbhar Nidhi)

The PM SVANidhi scheme is designed to support urban street vendors with accessible credit, encouraging financial inclusion, digital adoption, and sustainable business growth. 

• Loan Amounts

Eligible street vendors can get a collateral-free working capital loan of up to ₹10,000 in the first cycle. Upon timely repayment, they may become eligible for a second loan of up to ₹20,000 and a third loan of up to ₹50,000.

• Collateral-free

The scheme provides unsecured loans without requiring collateral or guarantors, making formal credit easily accessible for small vendors with limited financial documentation or history.

• Interest Subsidy

A 7% per annum interest subsidy is credited quarterly into the borrower’s account, provided the loan is repaid on time or earlier than scheduled.

• Digital Incentives

Vendors receive cashback incentives of up to ₹1,200 annually, for consistently carrying out transactions through digital payment platforms like UPI.

• Repayment Tenure

 The repayment tenure depends on the loan amount and loan cycle under PM SVANidhi. Vendors should follow the repayment schedule applicable to their sanctioned loan to maintain eligibility for future benefits under the scheme.

• No Prepayment Penalty

Borrowers can repay the loan before the due date without incurring any additional charges, enabling faster eligibility for higher loan tranches and improved credit access.

• No Processing Charges

The scheme ensures zero processing fees and minimal documentation, reducing entry barriers and making the borrowing process simple, transparent, and vendor-friendly.

• Target Beneficiaries

It is specifically designed for urban street vendors such as hawkers, Rehriwalas, and Thela-based sellers engaged in small-scale business activities across cities.

• Implementation Support

The scheme is implemented through a centralised framework with support from lending institutions, ensuring efficient disbursal, monitoring, and delivery of benefits to vendors. 

• Extended Timeline

The scheme has been extended until March 31, 2030, allowing more vendors to benefit while also introducing enhanced features like integrated digital credit access tools. 

The interest rates on PM SVANidhi loans are determined by the lending financial institutions in line with RBI and government guidelines. 

• Under PM SVANidhi, eligible vendors can receive an interest subsidy of 7% per annum on their loan, provided they meet the scheme's conditions, including timely repayment. The subsidy is credited directly to the borrower's account at prescribed intervals, helping reduce the overall borrowing cost.

• The effective interest rate can vary typically between 8% and 24%, depending on the lender's assessment and borrower profile.
  

• No processing or prepayment penalty fees apply, ensuring that vendors can close loans early without extra charges.
  

• This interest subsidy is available on all loans up to the third cycle, encouraging sustained repayment discipline.
   

Such subsidised and transparent interest frameworks make the scheme affordable and supportive for small street vendors. 

The scheme is structured around important objectives fundamental to vendor empowerment:

• Working Capital Support:

Provide collateral-free working capital loans to street vendors so they can maintain business continuity and support gradual expansion.

• Digital Payment Adoption:

Encourage digital transactions among street vendors through cashback incentives, reducing dependence on cash and supporting smoother payments.

• Financial Inclusion:

Link street vendors to formal banking systems and credit channels, helping them build a stronger financial profile over time.

• Livelihood Resilience:

Strengthen self-reliance among vulnerable vendor communities by helping them rebuild and stabilise their livelihoods after the pandemic.

• Capacity Building:

Support vendors through financial literacy and technology-based awareness drives integrated with the loan process, improving long-term confidence and capability. 

The eligibility criteria of this scheme are designed to target genuine street vendors operating in urban environments:

• Urban Street Vendors

  Street vendors engaged in vending activities within urban areas on or before 24 March 2020 are eligible under the scheme.

• Certificate of Vending or Identity Card
  Vendors holding a valid Certificate of Vending or Identity Card issued by the Urban Local Body (ULB) can apply under the scheme.

• Surveyed Vendors Without Documents
  Vendors identified in the official survey but not yet issued a Certificate of Vending or Identity Card may also be eligible.

• Vendors Not Covered in the Survey
  Vendors who were not included in the survey, or who started vending after the survey was conducted, may qualify if they obtain a Letter of Recommendation from the ULB or Town Vending Committee (TVC).

• Peri-urban and Nearby Area Vendors
  Vendors residing in peri-urban, rural, or surrounding development areas may also be eligible if they carry out vending activities within ULB limits and obtain the required Letter of Recommendation from the ULB or TVC.

• Subsequent Loan Cycles
  Vendors who repay earlier loans on time may become eligible for higher loan amounts under subsequent loan cycles, subject to the scheme guidelines.

• Local Verification Support
  Where survey records are unavailable, the ULB or TVC may use supporting documents, association records, or local verification to determine eligibility.

Applicants need to ensure submission of some key documents to support their loan applications: 

• Aadhaar Card linked with mobile number and bank account for identity verification. 

• Certificate of Vending or Identity Card issued by Urban Local Bodies. 

• Letter of Recommendation from ULB or Town Vending Committee for vendors lacking a formal certificate. 

• Recent passport-size photograph. 

• Bank passbook or statement detailing account number and IFSC code. 

• Alternate identity proofs such as Voter ID, driving licence, or PAN card may be accepted. 

• Proof of business location or operating area, if applicable. 

• Undertaking or declaration confirming the use of funds exclusively for vending business. 

The PM SVANidhi Yojana is meant for street vendors and hawkers vending in urban areas on or before 24 March 2020, including those in surrounding peri-urban or rural areas who sell within ULB limits with the required recommendation. 

PM SVANidhi supports diverse categories of street vendors involved in everyday trade: 

• Food and Beverage Vendors: Sellers of vegetables, fruits, tea, snacks, bread, eggs, and other ready-to-eat or fresh food items.

• Clothing and Daily Goods: Vendors dealing in apparel, footwear, books, stationery, and other everyday essentials.

• Artisan Products: Individuals selling handmade or locally crafted goods based on traditional skills.

• Service Providers: Includes barbers, cobblers, pan shop owners, and small laundry or repair service providers. 
   

Eligible vendors usually require a Certificate of Vending or Identity Card or may be listed in the scheme’s survey. Alternatively, they can also apply through a Letter of Recommendation from the ULB or Town Vending Committee where applicable. 

The online application process for the PM SVANidhi loan is designed to be simple and accessible: 

1. Start on the Official Portal:

   Open the official PM SVANidhi portal at https://pmsvanidhi.mohua.gov.in and log in to begin the application through the scheme’s digital system.

2. Use Mobile Verification:

   Log in with your mobile number, complete OTP verification, and enter the captcha correctly to access the application flow.

3. Select Vendor Details:

   Choose the correct vendor category and enter your Survey Reference Number, which helps match your application with the survey records.

4. Fill and Upload Carefully: 

   Complete your personal and bank details, then upload the required documents so the application can move forward for verification.

5. Submit the Form:

   Submit the completed application after checking every detail, since the system forwards it electronically for verification and sanction.

6. Track Application Status:

   Use the portal to monitor progress, while ULB verification and lender processing take place within the scheme workflow.
    

Upon approval, the loan amount will be directly credited to your registered bank account. 

For those preferring offline assistance, the following steps apply:

1. Visit the nearest Common Service Centre (CSC), Urban Local Body office, or the bank branch participating in the PM SVANidhi scheme.

2. Collect the physical application form and fill it out with accurate details.

3. Attach photocopies of required documents as listed. 

4. Submit the form to the CSC or designated institution.

5. The application is forwarded for verification and processing by the lending institution.

6. Follow up with the office or bank for status updates and further assistance.

7. Upon sanction, the loan amount is disbursed directly to the applicant’s bank account.

Keeping track of the loan processing is important for applicants:

1. Visit the official PM SVANidhi portal at https://pmsvanidhi.mohua.gov.in. 

2. Click on ‘Know Your Application Status’.

3. Enter your application reference number, mobile number, and OTP for verification.

4. The portal displays the current status of your loan application.

5. Alternatively, you may contact the helpline number 1800 11 1979 for assistance.

6. Banks and ULB offices may also provide updates through SMS or phone calls as part of customer service.