PM SVANidhi
PM Street Vendor’s AtmaNirbhar Nidhi
Central micro-credit scheme that offers collateral-free working capital loans to street vendors in urban and peri-urban areas, with progressive loan limits from ₹10,000 to ₹50,000, 7% interest subsidy and incentives for digital payments.
Who Can Apply?
Street Vendors / Hawkers
Persons engaged in vending of goods and services on streets, footpaths, or from temporary structures in urban and nearby areas.
Existing Vendors (Cut-off Date)
Should have been engaged in vending on or before the cut-off date specified in the guidelines (originally 24 March 2020) with due relaxations as updated.
Vendor ID or Letter of Recommendation
Preferably possess a Certificate of Vending / Identity Card issued by Urban Local Body, or a Letter of Recommendation from ULB / Town Vending Committee.
Urban / Peri-Urban Location
Vendors in statutory towns and surrounding peri-urban / rural areas notified under the scheme are eligible.
Age & KYC Compliance
Applicant should be an adult with valid Aadhaar linked to mobile number and basic KYC documents for bank account.
Repayment Track for Higher Loans
Second and third tranche eligibility depends on timely repayment and good track record in earlier loans.
Key Features
Collateral-Free Micro Loans
Provides small ticket, collateral-free working capital loans to help vendors restart or expand their daily business.
Progressive Loan Tranches
Vendors can move from first to second and third loans with increased limits once they show good repayment behavior.
7% Interest Subsidy
On-time repayment qualifies the borrower for an interest subsidy of 7% per annum, credited periodically to their account.
Digital Transaction Cashback
Regular use of digital payments (UPI, QR, etc.) can earn monthly cashback credited to the vendor’s bank account.
Formal Financial Inclusion
Brings street vendors into the formal banking system, helping them build a credit history for future larger loans.
Portfolio Guarantee to Lenders
A graded guarantee cover is provided on the loan portfolio, encouraging banks and NBFCs to lend to street vendors.
Scheme Benefits
Application Process
Check Eligibility & Documents
Confirm that you are a street vendor in an eligible area with a vending ID or recommendation letter and basic KYC and bank account.
Register & Apply Online / Through CSC
Apply via the official PM SVANidhi portal, Udyamimitra / UMANG, bank branch, or Common Service Centre by filling in personal, bank and vending details.
Verification & Sanction
Urban Local Body and lender verify your vending status and documents; once cleared, the bank sanctions the loan limit.
Disbursement, Repayment & Upgradation
Loan amount is credited to your account; on regular repayment and digital usage, you receive subsidy, cashback and eligibility for higher loan tranches.
Documents Required
Frequently Asked Questions
What loan amounts are available under PM SVANidhi?
Street vendors can usually get a first-time loan of around ₹10,000–₹15,000, a second loan of ₹20,000–₹25,000 and a third loan up to ₹50,000 on successful repayment and good track record.
Is any collateral required for the PM SVANidhi loan?
No. Loans under PM SVANidhi are designed as collateral-free working capital loans for eligible street vendors.
How does the 7% interest subsidy work?
If you repay your loan on time, the government reimburses 7% of the interest charged, which is periodically credited to your bank account.
How do digital transaction cashback incentives work?
By using UPI or other digital modes for your business transactions, you can earn monthly cashback (up to a specified cap) that is directly credited to your bank account.
Where can I apply for the PM SVANidhi loan?
You can apply online through the official PM SVANidhi portal or via participating banks, NBFCs, Common Service Centres and mobile apps integrated with the scheme.
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