PM SVANidhi Yojana — ₹50,000 Collateral-Free Loan for Street Vendors
PM SVANidhi provides working capital loans up to ₹50,000 to street vendors. Check eligibility, interest subsidy, cashback offers, and how to apply online.
Ministry: Ministry of Housing and Urban Affairs
Quick Summary
PM SVANidhi at a Glance: A special micro-credit facility for street vendors. Provides loans in three tranches: ₹10,000, ₹20,000, and ₹50,000. No collateral required. Interest subsidy of 7% on timely repayment. Monthly cashback on digital transactions. Apply online at pmsvanidhi.mohua.gov.in.
The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) was launched during the COVID-19 pandemic to help street vendors resume their livelihoods. It has since become a powerful tool for financial inclusion, bringing millions of unorganized vendors into the formal banking system.
What is PM SVANidhi?#
PM SVANidhi is a central sector scheme that provides affordable working capital loans to street vendors. The scheme is designed to reward timely repayment with higher loan amounts and interest subsidies, making it one of the most popular loan schemes for small-scale entrepreneurs.
Loan Structure & Tranches#
The scheme provides loans in three progressive stages:
- 1st Loan (Initial): Up to ₹10,000 (Repayable in 12 monthly installments).
- 2nd Loan (After repayment of 1st): Up to ₹20,000.
- 3rd Loan (After repayment of 2nd): Up to ₹50,000.
Key Benefits#
- Collateral-Free: No need to provide any security or guarantee to the bank.
- Interest Subsidy: Get a 7% interest subsidy credited to your account every quarter if you pay your EMIs on time.
- Cashback on Digital Payments: Earn up to ₹1,200 per year (₹100/month) as cashback by accepting digital payments (UPI) from customers.
- Credit Score Improvement: Regular repayment helps build a good credit history, making you eligible for larger loans in the future.
- No Prepayment Penalty: You can pay back the loan early without any extra charges.
Who is Eligible?#
The scheme is available to street vendors/hawkers in urban, peri-urban, and rural areas who:
- Were engaged in vending on or before March 24, 2020.
- Possess a Certificate of Vending (CoV) or Identity Card issued by Urban Local Bodies (ULBs).
- Have been identified in the survey conducted by ULBs but haven't received a certificate yet.
- Have a Letter of Recommendation (LoR) from the local Town Vending Committee (TVC).
Documents Required#
- Aadhaar Card (Linked to mobile number)
- Voter ID card
- Certificate of Vending (CoV) or Identity Card (if available)
- Letter of Recommendation (LoR) (if CoV is not available)
- Bank Account details (Passbook/Statement)
- Mobile Number
How to Apply Online#
Step 1: Visit the Portal
Go to the official PM SVANidhi portal: pmsvanidhi.mohua.gov.in.
Step 2: Plan Your Loan
Choose the loan amount (₹10k, ₹20k, or ₹50k) based on your eligibility.
Step 3: Check Eligibility
Enter your Aadhaar-linked mobile number and verify with OTP. The system will check if your name is in the vendor survey list.
Step 4: Fill the Application
If eligible, fill in your personal, business, and bank details. Select the bank where you have a savings account for faster processing.
Step 5: Upload Documents
Upload your digital ID or LoR and Aadhaar card.
Step 6: Submit
Submit the form. You will receive an application ID. The bank will contact you for a brief verification, and the loan will be disbursed directly to your account.
Apply through CSC: If you find the online process difficult, you can visit any Common Service Centre (CSC) or a bank branch. They will help you fill the form for a very small fee.
Digital Transaction Incentive#
To promote Digital India, the scheme offers monthly cashback:
- For the first 50 eligible transactions: ₹50
- For the next 50 transactions: ₹25
- For the next 100 transactions: ₹25
- Total: ₹100 per month
Frequently Asked Questions#
1. What is the interest rate for PM SVANidhi? Banks charge their standard interest rates (usually 9-12%). However, because the government provides a 7% subsidy, your effective interest rate becomes very low (2-5%).
2. Can I apply if I started my business after 2020? The initial cut-off was March 2020. However, the government periodically extends the scheme to new vendors. Check the latest "New Vendor" guidelines on the portal.
3. How do I get a Letter of Recommendation (LoR)? You can apply for an LoR on the PM SVANidhi portal itself or by visiting your local Municipality/Municipal Corporation office.
4. Is there any processing fee for this loan? No. Banks are instructed not to charge any processing fees for PM SVANidhi loans.
5. How long does it take for the loan to be credited? On average, the process takes 7 to 15 days from the date of application, provided your documents are in order.