Check features, benefits, eligibility, interest rate & how to apply for PM SVANidhi loan
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PM Street Vendor's AtmaNirbhar Nidhi, or the PM SVANidhi Yojana, is a micro-credit facility for street vendors. This scheme provides affordable working capital loans of up to ₹10,000 for a tenure of 1 year to street vendors.
The Ministry of Housing and Urban Affairs launched this scheme to support the livelihood of street vendors affected by the COVID-19 pandemic.
Here are some important details of the PM SVANidhi Yojana:
Scheme Launch Date |
June 01, 2020 |
Scheme Extension |
The scheme has been extended up to December 2024 |
Executing Ministry |
Ministry of Housing and Urban Affairs (MoHUA), Government of India |
Beneficiaries |
Street hawkers vending in urban regions as on and before March 24, 2020 |
Loan Amount Offered |
Up to ₹10,000 |
Interest Rate |
7% p.a. |
Here are some key parameters of the scheme:
To provide a working capital loan of up to ₹10,000 at an affordable interest rate
To incentivise timely repayment of loan
To reward digital transactions with cashback
The subsidised interest rate for the PM SVANidhi Scheme is 7% p.a. The interest rates are fixed as per the prevailing loan interest rates offered by the following institutions:
Scheduled Commercial Banks (SCBs)
Regional Rural Banks (RRBs)
Small Finance Banks (SFBs)
SHGs (self-help groups)
Cooperative banks
The interest rate depends on the RBI guidelines if you get the loan from the following entities:
Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs)
Non-Banking Financial Companies (NBFCs)
If the non-NBFC lenders are not covered under the RBI guidelines, the interest rates would be fixed as per the RBI guidelines for NBFC-MFIs.
Follow these steps to apply for a loan under the PM SVANidhi Scheme:
Step 1: Visit the official website and click on the ‘Apply Loan 10K’ tab
Step 2: Provide your mobile number and enter the captcha code
Step 3: Choose your category and fill in the required fields
Step 4: Click on the ‘Submit’ option to apply
Follow these steps to check the PM SVANidhi loan status online:
Step 1: Visit the official website of the PM SVANidhi Scheme
Step 2: Log in using your ID and password
Step 3: View the loan status on the screen
Here are the top-performing states of the PM SVANidhi Scheme:
Uttar Pradesh
Madhya Pradesh
Maharashtra
Telangana
Gujarat
The Small Industries Development Bank of India (SIDBI) is the implementation partner to assist the Ministry. SIDBI launched a portal on July 02, 2020, and developed a mobile app for Lending Institutions (LIs), ULBs, States and stakeholders.
This loan digitisation process helped lending institutions manage the large number of applications for the scheme.
The Government offers cashback to incentivise vendors to promote digital transactions under this scheme. Vendors who make transactions of ₹25 or above are eligible for a cashback. Here is the cashback that vendors can earn:
First 50 eligible transactions - ₹50
Next 50 eligible transactions - ₹25
Next 100 eligible transactions - ₹25
FAQs on the PM SVANidhi Yojana
What is the full form of PM SVANidhi and its objective?
PM SVANidhi stands for PM Street Vendor's AtmaNirbhar Nidhi. It has three-fold objectives: first, to provide street vendors with a collateral-free working capital loan of up to ₹10,000. Second, to incentivise regular repayments and third, to promote digital transactions.
What are the salient features of this scheme?
Firstly, the PM SVANidhi scheme offers monthly cashback on online transactions. Moreover, it facilitates working capital of ₹10,000 with a one-year tenure with an interest subsidy of 7% on early repayment.
What is the rate and amount of interest subsidy?
If you have opted for loans under the PM SVANidhi Scheme, you can get an interest subsidy of 7%.
How long will it take to get the loan approved?
You will get the loan approved within 30 days under the SVANidhi Scheme.
Is it necessary to link a mobile number with Aadhaar to avail the benefit of the PM SVANidhi loan?
Yes, it is necessary to link your mobile number with your Aadhaar Card to avail of a loan under the PM SVANidhi Scheme. It is because the loan application process involves OTP-based Aadhaar verification.
Do I need to provide any collateral to avail the PM SVANidhi loan?
The loans provided under the PM SVANidhi Scheme are unsecured in nature. Therefore, you need not pledge any collateral to avail a PM SVANidhi loan.
What is the maximum loan amount for PM SVANidhi?
The maximum loan amount for the PM SVANidhi Scheme is ₹50,000. However, you can only avail of up to ₹10,000 as initial working capital.
How many loans can I take from PM SVANidhi?
You can avail of loans in three different terms under the PM SVANidhi scheme.
What is the interest rate of PM SVANidhi ₹20,000 loan?
The PM SVANidhi interest rate for ₹20,000 loan is identical to similar loans if you avail of it from SCBs, RRBs, SHGs, and Cooperative Banks. However, it will depend on the RBI guidelines if you avail of such a loan from MFIs or NBFCs.
Is there any loan pre-closure penalty under this scheme?
No, you do not need to pay any penalty for the pre-closure of the working capital loan under the PM SVANidhi Scheme.
