PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

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.

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.

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:

1. Visit the official portal at https://pmsvanidhi.mohua.gov.in and click on ‘Log In’. 

2. Log in with your mobile number (OTP verification) and fill out the correct captcha. 

3. Select the appropriate ‘vendor category’ from the options provided. 

4. Enter your mandatory ‘Survey Reference Number’ (SRN) in the provided space. 

5. Fill in personal details and bank account information, and upload scanned copies of required documents. 

6. Submit the completed application form. 

7. Use the portal to track your application status in real time. 

8. 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.