PM SVANidhi Loan: How to Apply for Street Vendor Loan Online

PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) is a Central Government scheme that provides affordable working capital loans to street vendors. If you are a street vendor — selling food, goods, or services on the roadside — you can get a loan from ₹10,000 up to ₹50,000 with a 7% interest subsidy from the government.

What is PM SVANidhi Scheme?

PM SVANidhi was launched in June 2020 under the Ministry of Housing and Urban Affairs (MoHUA) to help street vendors recover from the impact of COVID-19 and sustain their livelihoods. The scheme provides collateral-free working capital loans in three tiers:

• First Loan: ₹10,000
• Second Loan: ₹20,000 (after timely repayment of first loan)
• Third Loan: ₹50,000 (after timely repayment of second loan)

The government provides a 7% per annum interest subsidy directly into the borrower's account. Additionally, vendors who make digital transactions get cashback incentives up to ₹1,200 per year.

Who is Eligible?

You can apply for PM SVANidhi if you meet these conditions:

• You are a street vendor engaged in vending in urban areas
• You possess a Certificate of Vending (CoV) or Letter of Recommendation (LoR) issued by the Urban Local Body (ULB)
• Vendors identified in the survey conducted by ULBs or those with a valid LoR from the Town Vending Committee (TVC)
• You must have an Aadhaar card linked with a mobile number
• Age: 18 years or above
• You must have a bank account (or willingness to open one)

Note: Vendors who were vending on or before 24 March 2020 and have been surveyed by ULBs are automatically eligible. Others can apply through the ULB for a Letter of Recommendation.

Documents Required

• Aadhaar Card (mandatory, linked with mobile number)
• Certificate of Vending (CoV) or Letter of Recommendation (LoR) from ULB
• Bank account details (passbook or cancelled cheque)
• Passport-size photograph
• Mobile number linked to Aadhaar
• Category certificate (SC/ST/OBC, if applicable — for data purposes)

Step-by-Step Process to Apply Online

Online Application via PM SVANidhi Portal

1. Visit the official PM SVANidhi portal at pmsvanidhi.mohua.gov.in
2. Click on "Apply for Loan" or "Apply Now" on the homepage
3. Enter your mobile number and verify with OTP
4. Fill in your personal details — name, Aadhaar number, date of birth, address
5. Complete Aadhaar e-KYC by entering the OTP sent to your Aadhaar-linked mobile
6. Upload your Certificate of Vending or Letter of Recommendation
7. Enter your bank account details (account number, IFSC code)
8. Select the loan amount you wish to apply for (₹10,000 for first-time applicants)
9. Review all details and submit the application
10. Note down your Application Reference Number for tracking
11. The application is forwarded to the lending institution (bank/NBFC/MFI) for processing
12. After verification, the loan amount is disbursed directly to your bank account

Offline Application

1. Visit your nearest Urban Local Body (ULB) office or Common Service Centre (CSC)
2. Collect the PM SVANidhi application form
3. Fill the form with your personal and vending details
4. Attach required documents (Aadhaar copy, photo, CoV/LoR, bank details)
5. Submit the form at the ULB counter
6. The ULB will process and forward your application to the lending institution

Loan Details & Repayment

• Interest Subsidy: 7% per annum, credited quarterly to your bank account
• Collateral: No collateral or guarantor required
• Cashback: Up to ₹100 per month (₹1,200/year) for digital transactions via UPI, BHIM, etc.
• Early Repayment: Encouraged with no penalty; enables faster access to higher loan tiers

How to Track Your Application

1. Visit pmsvanidhi.mohua.gov.in
2. Click on "Know Your Application Status"
3. Enter your Application Number or Mobile Number
4. View current status — Submitted, Under Review, Sanctioned, or Disbursed

Important Tips

1. Get your LoR first — If you don't have a Certificate of Vending, approach your ULB/TVC for a Letter of Recommendation before applying
2. Link your mobile to Aadhaar — e-KYC requires OTP on your Aadhaar-linked mobile. See our Aadhaar guide for help
3. Use digital payments — Make at least 50 digital transactions per month to maximize cashback benefits
4. Repay on time — Timely repayment of ₹10K loan qualifies you for the next tier (₹20K, then ₹50K)
5. Beware of fraud — PM SVANidhi is free to apply. Never pay anyone for processing. Apply only through the official portal

Frequently Asked Questions

What is the interest rate on PM SVANidhi loan?

Banks charge their standard lending rate, but the government provides a 7% per annum interest subsidy which is directly credited to your bank account every quarter. This effectively reduces your interest burden significantly.

Can I apply for PM SVANidhi without a Certificate of Vending?

Yes. If you don't have a Certificate of Vending, you can get a Letter of Recommendation (LoR) from the Urban Local Body (ULB) or Town Vending Committee (TVC). Vendors identified in the ULB survey are also eligible.

How long does it take to get the loan disbursed?

After application submission, the lending institution typically processes and disburses the loan within 15 to 30 working days, depending on verification and document completeness.

Can I apply for a second loan under PM SVANidhi?

Yes. After successfully repaying your first loan of ₹10,000, you can apply for a second loan of ₹20,000. After repaying that, you are eligible for a third loan of ₹50,000.

Is PM SVANidhi available in rural areas?

No. PM SVANidhi is specifically designed for urban street vendors. It covers vendors operating in all urban local body areas across India.

What digital payment methods qualify for cashback?

Transactions through UPI, BHIM, PayTM (UPI), Google Pay, PhonePe, and other government-approved digital payment modes qualify for the cashback incentive.

What happens if I default on the loan?

Defaulting affects your credit history and makes you ineligible for the next tier of loan. The lending institution may initiate recovery as per standard banking procedures.

Disclaimer: This guide is published by CitizenNest for informational purposes only. We are not affiliated with the Government of India. For official information, visit pmsvanidhi.mohua.gov.in. Information is accurate as of the last updated date; verify details on the official portal before applying.