Get a collateral-free loan of up to ₹50,000 under the PM SVANidhi Scheme for street vendors with 7% interest subsidy & digital benefits.
The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is a government initiative to provide easy working capital loans to street vendors. Understand how it empowers them to restart and expand their businesses with minimal financial burden.
The PM SVANidhi Yojana was launched by the Ministry of Housing and Urban Affairs in June 2020 amid the challenging times of the COVID-19 pandemic. Street vendors, who faced severe survival challenges during lockdowns due to shrinking demand and restricted movement, were the primary beneficiaries.
This scheme offers collateral-free loans to help them resume their livelihoods, encourages regular repayments through interest subsidies, and promotes the adoption of digital transactions via cashback rewards. It plays a crucial role in supporting urban informal traders who are vital contributors to India’s economy but often excluded from formal credit systems.
The PM Street Vendor’s AtmaNirbhar Nidhi is a financial scheme that provides affordable micro-credit loans to street vendors in urban and peri-urban areas. The scheme initially offers a working capital loan of up to ₹10,000 for a one-year tenure, with provisions for enhanced subsequent loans of ₹20,000 and ₹50,000 upon timely repayment. No collateral or security is required, making it accessible to vulnerable vendors who often lack formal credit histories.
The programme also incentivises digital transactions by rewarding vendors with cashback, thereby encouraging financial inclusion and transparency. It is designed not only as a credit facility but also as a holistic support system for street vendors. Furthermore, it provides a means of capacity building and access to technology. More than 50 lakh street vendors across India are targeted under this programme to uplift their economic status and integrate them into the formal financial system.
Here is a concise overview of the key features of the PM SVANidhi loan scheme:
Parameter | Details |
---|---|
Max Loan Amount |
Up to ₹10,000 (1st loan), ₹20,000 (2nd loan), ₹50,000 (3rd loan) |
Interest Rate |
As per specific lender norms; government provides 7% interest subsidy on timely repayment |
Loan Tenure |
12 months (1st loan), 18 months (2nd loan), 36 months (3rd loan) |
Collateral |
No collateral or security required |
Processing Fee |
Nil |
Cashback Incentive |
Up to ₹1,200 annually for digital transactions |
Repayment |
Monthly EMI |
Loan Type |
Working Capital Term Loan (WCTL) |
These loans can be utilised for various business needs, such as purchasing inventory, equipment, or restarting vending activities disrupted by the pandemic.
The scheme is structured around important objectives fundamental to vendor empowerment:
Provide collateral-free working capital loans to street vendors for business continuity and expansion.
Encourage digital payments among street vendors through cashback incentives, reducing cash dependency.
Foster financial inclusion by linking street vendors to formal banking channels and credit systems.
Support self-reliance and resilience among vulnerable vendor communities, helping them rebuild livelihoods post-pandemic.
Enable capacity building using technological and financial literacy drives integrated with loan disbursal processes.
No asset or guarantor is needed to avail the loan, easing access to credit.
A 7% annual interest subsidy incentivises timely repayment and reduces financial pressure.
Vendors can apply for enhanced loan amounts upon successful repayment of earlier loans, supporting business growth.
Up to ₹1,200 yearly cashback motivates adoption of digital payments, promoting transparency and financial inclusion.
The interest rates on PM SVANidhi loans are determined by the lending financial institutions in line with RBI and government guidelines.
Vendors benefit from a 7% interest subsidy credited directly to their accounts on timely or early repayment, effectively lowering the cost of borrowing.
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 eligibility criteria are designed to target genuine street vendors operating in urban environments:
Must be a street vendor engaged in vending activities in urban or peri-urban areas as of 24th March, 2020.
Should possess a valid Certificate of Vending or Identity Card issued by the area’s Urban Local Bodies (ULB).
Vendors without formal certificates but identified during surveys or by ULBs/Town Vending Committees (TVC) with a Letter of Recommendation (LoR) can also apply.
The applicant should have a bank account with an Aadhaar-linked mobile number registered for seamless disbursal and communication.
Those vendors qualify for the benefits who sell goods/products from streets, pavements, or fixed stalls and who comply with the Street Vendors Act, 2014.
Applicants must not have defaulted on prior PM SVANidhi loans to be eligible for higher subsequent loans.
Residential proof within the operational geography may also be required.
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 online application process for the PM SVANidhi loan is designed to be simple and accessible:
Visit the official portal at https://pmsvanidhi.mohua.gov.in and click on ‘Log In’.
Log in with your mobile number (OTP verification) and fill out the correct captcha.
Select the appropriate ‘vendor category’ from the options provided.
Enter your mandatory ‘Survey Reference Number’ (SRN) in the provided space.
Fill in personal details and bank account information, and upload scanned copies of required documents.
Submit the completed application form.
Use the portal to track your application status in real time.
Upon approval, the loan amount will be directly credited to your registered bank account.
For those preferring offline assistance, the following steps apply:
Visit the nearest Common Service Centre (CSC), Urban Local Body office, or the bank branch participating in the PM SVANidhi scheme.
Collect the physical application form and fill it out with accurate details.
Attach photocopies of required documents as listed.
Submit the form to the CSC or designated institution.
The application is forwarded for verification and processing by the lending institution.
Follow up with the office or bank for status updates and further assistance.
Upon sanction, the loan amount is disbursed directly to the applicant’s bank account.
Keeping track of the loan processing is important for applicants:
Visit the official PM SVANidhi portal at https://pmsvanidhi.mohua.gov.in.
Click on ‘Know Your Application Status’.
Enter your application reference number, mobile number, and OTP for verification.
The portal displays the current status of your loan application.
Alternatively, you may contact the helpline number 1800 11 1979 for assistance.
Banks and ULB offices may also provide updates through SMS or phone calls as part of customer service.
Several Indian states complement the PM SVANidhi scheme with their own vendor support schemes:
State | Scheme Name/Supported By | Details |
---|---|---|
Tamil Nadu |
Tamil Nadu Street Vendors Welfare Scheme, 2010 |
Offers social security and welfare benefits to street vendors and small traders. |
Uttar Pradesh |
Support to Urban Street Vendors (SUSV) under DAY-NULM |
Includes skilling, credit enablement, and urban planning for vendors. |
Maharashtra |
PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) |
Central scheme implemented in Maharashtra for collateral-free loans. |
Karnataka |
Karnataka Street Vendors Scheme, 2020 + PM SVANidhi |
Includes licensing, surveys, electric vending vehicles, and financial support. |
Kerala |
PM SVANidhi via Kudumbashree & ULBs |
Active in 93 ULBs; over 51,000 vendors supported with loans and digital incentives. |
These state initiatives enable broader reach and add localised benefits to street vendors.
The PM SVANidhi Scheme is a government-backed micro-credit facility offering collateral-free working capital loans to urban street vendors to help them restart and grow their businesses, especially after disruptions caused by the COVID-19 pandemic.
Loan approval timelines can vary, but if documentation is complete, the entire process may be completed within 30 days or less from application submission.
Yes, linking the registered mobile number with Aadhaar and bank account is essential for authentication, loan disbursal, and communication under the scheme.
No collateral or security is required for loans under this scheme, making it highly accessible to street vendors lacking formal assets.
No, there is no penalty charged if the borrower decides to close their loan early.
It stands for Prime Minister Street Vendor’s AtmaNirbhar Nidhi.
The maximum loan amount available is ₹10,000 during the first loan cycle, ₹20,000 for the second, and ₹50,000 for the third cycle.
There is no pre-closure penalty, allowing vendors flexibility to repay loans early without extra cost.
No processing or application fee is charged from the applicants under this scheme.
An individual vendor can apply for loans in multiple cycles (up to three), subject to timely repayment of the previous loans, enabling business expansion.
PM SVANidhi is a central scheme launched in 2020 to provide collateral-free working capital loans to street vendors, supporting them to restart businesses post-COVID-19 and promoting digital transactions and financial inclusion.
The scheme offers a 7% interest subsidy on timely repayment, effectively lowering the cost of borrowing on loans of up to ₹10,000. Some states may provide additional subsidies.
No, CIBIL score is needed. Eligibility relies on certification from Urban Local Bodies or vending permits, not formal credit history, to include informal sector street vendors.
The repayment tenure for the first loan is 1-year, with eligibility for subsequent higher loans after timely repayment. The scheme is extended until March 2030.