PM SVANidhi – Micro Loans for Street Vendors

PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) is a Government of India scheme that provides affordable micro-credit loans to street vendors to help them restart and grow their businesses. The scheme was launched to support the livelihood of street vendors and promote digital transactions.

What is PM SVANidhi?

PM SVANidhi provides collateral-free working capital loans in three tiers:

Key Features

• No collateral required
• Interest subsidy of 7% per annum (government pays 7% of the bank's interest)
• Cashback incentive for digital transactions — ₹50 to ₹200 per month
• Repayment period — 12 months for each tier (flexible monthly instalments)
• Credit score building — regular repayment builds the vendor's credit history

Who is Eligible?

• Street vendors operating in urban areas
• Vendors who have been issued a Certificate of Vending (CoV) or Letter of Recommendation (LoR) by the Urban Local Body (ULB)
• Vendors identified in the ULB survey conducted under Street Vendors Act, 2014
• Vendors who were vending on or before 24 March 2020 and have been identified by ULB/Town Vending Committee (TVC)
• Vendors from surrounding peri-urban/rural areas who vend in urban areas

Who Can Apply?

• Vegetable and fruit sellers
• Tea/snack stall operators
• Street food vendors
• Hawkers of clothes, shoes, and accessories
• Newspaper/book sellers
• Mechanics and repair service providers on streets
• Barbers, cobblers, pan shops, laundry services
• Any vendor operating from a street, footpath, or public place

Documents Required

• Aadhaar card
• Certificate of Vending (CoV) or Letter of Recommendation (LoR) from ULB
• Bank account details (or willingness to open one)
• Passport-size photograph
• Mobile number
• Vending licence (if available)

How to Apply for PM SVANidhi

Online Application

1. Visit pmsvanidhi.mohua.gov.in
2. Click on "Apply for Loan"
3. Enter your mobile number — receive and verify OTP
4. Fill in personal details — name, Aadhaar number, address, vending details
5. Upload your photograph and Certificate of Vending/LoR
6. Select the preferred lending institution (bank/MFI/NBFC)
7. Submit the application
8. Application is verified by the ULB and forwarded to the lending institution
9. Lending institution sanctions and disburses the loan to your bank account

Offline Application

1. Visit your nearest bank branch, MFI, or NBFC that is partnered with PM SVANidhi
2. Request the PM SVANidhi loan application form
3. Fill in details and attach documents
4. Bank processes the application after ULB verification
5. Loan disbursed to your bank account

Through Common Service Centres

1. Visit your nearest CSC/Jan Seva Kendra
2. CSC operator will fill the online application on your behalf
3. Submit required documents
4. Track application status online

Interest Subsidy and Cashback

Interest Subsidy

• Government provides 7% interest subsidy per annum
• Subsidy is credited quarterly to the vendor's bank account
• Effectively reduces the interest burden significantly

Digital Transaction Cashback

Vendors are encouraged to use UPI, BHIM, or other digital payment methods for their business.

Repayment Structure

How to Check Application Status

1. Visit pmsvanidhi.mohua.gov.in
2. Click on "Know Your Application Status"
3. Enter your application number or mobile number
4. View the current status — submitted, under verification, sanctioned, or disbursed

Key Benefits

• No collateral — loan is completely unsecured
• 7% interest subsidy — significantly reduces borrowing cost
• Cashback rewards for digital transactions — up to ₹2,400 per year
• Credit history building — vendors develop a formal credit score for future borrowing
• Progressive lending — good repayers can access larger loans (up to ₹50,000)
• Quick disbursement — typically within 15-30 days of application
• Financial inclusion — brings street vendors into the formal banking system

Important Tips

1. Get your Certificate of Vending from the municipal body — this is the primary document needed
2. Repay on time to access the next tier of higher loan amount
3. Use digital payments in your business to earn cashback of up to ₹200/month
4. Link Aadhaar to bank account for smooth subsidy and loan processing
5. Don't approach middlemen — apply directly online or at the bank; there are no charges for application

Frequently Asked Questions

What is the maximum loan under PM SVANidhi?

The maximum loan is ₹50,000 (3rd tier). First-time applicants get up to ₹10,000, and the amount increases with each subsequent loan on timely repayment.

Do I need collateral for PM SVANidhi loan?

No. PM SVANidhi loans are completely collateral-free. No guarantee or security is required.

What is the interest rate for PM SVANidhi?

The interest rate is as per the lending institution's terms, but the government provides a 7% per annum interest subsidy, effectively reducing your cost significantly.

How do I get the Certificate of Vending?

Apply at your Municipal Corporation/Urban Local Body office. Under the Street Vendors Act, 2014, all identified street vendors are entitled to a Certificate of Vending or Letter of Recommendation.

Can I apply if I don't have a vending licence?

If you are identified in the ULB's street vendor survey, you can get a Letter of Recommendation (LoR) which serves as an alternative to the vending licence for this scheme.

What happens if I default on repayment?

Default affects your credit score and you will not be eligible for the next tier of loan. It may also affect your ability to get other bank loans in the future.

This guide is for informational purposes only and is not affiliated with the Government of India. For official details, visit pmsvanidhi.mohua.gov.in.