PM SVANidhi Scheme: Collateral-Free Loans up to ₹50,000 for Street Vendors
Micro-entrepreneurs and street vendors represent the heartbeat of local urban commerce, yet securing working capital has historically pushed many toward unregulated lenders charging steep interest rates. To address this financial gap, the Government of India launched the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) on June 1, 2020, overseen by the Ministry of Housing and Urban Affairs (MoHUA).
Under the restructured framework approved by the Union Cabinet, the lending window operates with an extended timeline up to March 31, 2030. The scheme introduces enhanced initial loan amounts, digital incentives, and institutional credit access designed to build formal financial histories for vendors.
Key Highlights at a Glance
| Parameter | Details |
| Scheme Name | PM SVANidhi |
| Full Title | Prime Minister Street Vendor’s AtmaNirbhar Nidhi |
| Nodal Ministry | Ministry of Housing and Urban Affairs (MoHUA), Government of India |
| Lending Period | Extended through March 31, 2030 |
| Maximum Loan Cap | Up to ₹50,000 across three progressive tranches |
| Loan Category | Collateral-free working capital facility |
| Interest Subsidy | 7% per annum on timely or early repayments |
| Digital Perks | Up to ₹1,600 annual cashback on eligible digital transactions |
| Card Facility | UPI-linked RuPay Credit Card (limit up to ₹30,000 upon 2nd loan repayment) |
| Official Portal | pmsvanidhi.mohua.gov.in |
Structured Loan Tranches and Repayment Periods
The scheme follows an incremental borrowing model: repaying a smaller loan punctually unlocks higher credit limits on subsequent applications.
| Loan Tranche | Maximum Amount | Repayment Tenure | Key Requirement |
| First Tranche | Up to ₹15,000 | Up to 12 months | Fresh eligible applicant |
| Second Tranche | Up to ₹25,000 | Up to 18 months | Successful, timely repayment of the 1st tranche |
| Third Tranche | Up to ₹50,000 | Up to 36 months | Successful, timely repayment of the 2nd tranche |
Note: Borrowers face no prepayment penalty. Early repayment clears the track to apply for the next loan tranche immediately.
Core Benefits of the PM SVANidhi Scheme
- Zero Collateral Requirement: Street vendors do not need to pledge property, equipment, or personal assets as security to obtain working capital.
- 7% Interest Subsidy:Borrowers who repay scheduled monthly installments on time receive an interest subsidy of 7% per annum. This amount is credited directly to the borrower’s bank account every quarter via Direct Benefit Transfer (DBT).
- Cashback on Digital Transactions:The platform incentivizes digital billing via UPI/QR codes. Beneficiaries can earn up to ₹1,200 annually on customer receipts (capped at ₹100 per month) plus up to ₹400 annually on wholesale transactions (₹20 per wholesale payment of ₹2,000+, capped at ₹100 per quarter).
- UPI-Linked RuPay Credit Card:After successfully paying off the second loan tranche, vendors can access a pre-approved, UPI-enabled RuPay credit card with a spending limit of up to ₹30,000.
- Formal Credit Building: Repayment data is logged with credit bureaus, establishing formal CIBIL scores that unlock access to larger commercial bank loans in the future.
Who is Eligible to Apply?
The scheme extends across urban local bodies, peri-urban pockets, and census towns for individuals operating retail vending stalls (food items, apparel, fresh produce, household wares, artisan crafts).
Applicants qualify under any of the following criteria:
- Registered Vendors:Possess an official Certificate of Vending (CoV) or Vendor Identity Card issued by the Urban Local Body (ULB) / Town Vending Committee (TVC).
- Surveyed Vendors: Identified during a municipal vending survey, even if their formal ID card or CoV is still awaiting issuance.
- Vendors with Recommendation: Vendors left out of municipal surveys or operating in adjacent semi-urban areas who secure a Letter of Recommendation (LoR) from their local ULB or TVC.
Required Documents and Details
- Identity Proof:Aadhaar Card (must be linked to an active mobile number to complete OTP e-KYC).
- Banking Details:Active Bank Account details (Account Number, IFSC code, and branch name; Jan Dhan accounts are accepted).
- Vending Verification:Certificate of Vending (CoV), municipal ID card, or an approved Letter of Recommendation (LoR).
- Passport-Sized Photograph: Digital photograph (or captured live during online registration).
Step-by-Step Online Application Process
Step 1: Verification of Identity and Vending Status
Visit the official PM SVANidhi portal at [https://pmsvanidhi.mohua.gov.in/](https://pmsvanidhi.mohua.gov.in/). Click on “Apply for Loan”. Enter your Aadhaar-linked mobile number to generate and submit an OTP.
Step 2: Select Vendor Category
Identify your vending classification:
- Category A/B: Vendors with CoV or Municipal ID card.
- Category C/D: Vendors applying with an LoR or requesting an LoR through the portal.
Step 3: Complete Personal & Business Profile
Fill in basic demographic details, residential address, family information, and details regarding your street vending activity (location, vending hours, and product category).
Step 4: Enter Bank and Loan Preferences
Input your bank account details for direct disbursement. Select the loan tranche (e.g., First Loan of up to ₹15,000 for new borrowers) and choose your preferred lending partner from the list of registered banks, Small Finance Banks, or Microfinance Institutions (MFIs).
Step 5: Upload Documents & Submit
Upload your photo and digital copy of the CoV/ID/LoR if requested. Review all entries and submit the form. Note down the generated Application Reference Number (ARN) for status tracking.
Offline and Assisted Application Options
Applicants who encounter difficulties using the online portal can receive free in-person assistance:
- Common Service Centres (CSCs):Village-Level Entrepreneurs (VLEs) at CSCs can submit the digital application on your behalf.
- Municipal Ward Offices / ULB Helpdesks: Municipal officials and Town Vending Committees assist in issuing Letters of Recommendation and processing loan requests.
- Banking Correspondents (BCs):Doorstep banking agents from commercial and regional rural banks assist with on-spot documentation and KYC verification.