Origin
- The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched on June 1, 2020 by the Ministry of Housing and Urban Affairs (MoHUA).
- It was part of the Atmanirbhar Bharat Abhiyan.
- The scheme was launched to help street vendors who were affected by the COVID-19 pandemic.
- The scheme was introduced to provide financial support to street vendors so that they could restart their businesses.
About
- The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme is a micro-credit facility launched by the Ministry of Housing and Urban Affairs (MoHUA) on June 1, 2020.
- This scheme aims to provide affordable working capital loans to street vendors to help them recover from the COVID-19 pandemic and enhance their businesses.
What is PM SVANidhi Scheme?
- The PM SVANidhi Scheme is a collateral-free loan initiative designed to empower street vendors by providing financial assistance for their working capital needs.
- It offers loans up to ₹50,000 in phases, along with incentives for digital transactions and timely repayments.
Recent Updates Under Budget 2025
- PM SVANidhi scheme has helped over 68 lakh street vendors, giving them respite from high-interest informal sector loans.
- Building on this success, the scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with Rs 30,000 limit, and capacity-building support.”
- PM SVANidhi was launched in 2020 when the Covid-19 pandemic and the lockdowns hit street vendors.
- Under the scheme, vendors can avail themselves of loans of Rs 10,000, Rs 20,000, and Rs 50,000. As many as 95.84 lakh loans worth Rs 13,741 crore have been disbursed so far.
Key Objectives of the Scheme
- Provide financial assistance to street vendors to restart and expand their businesses.
- Promote digital transactions and financial inclusion.
- Encourage timely repayments with interest subsidies.
- Facilitate socio-economic upliftment of street vendors.
Eligibility Criteria
- The scheme is open to street vendors who were actively vending in urban areas before March 24, 2020.
- The eligibility is verified through:
- Street Vendor Certificate issued by Urban Local Bodies (ULBs)
- Vendors identified in surveys conducted by ULBs
- Letter of Recommendation (LoR) from ULBs for unregistered vendors
Who Can Apply?
- Fruit & vegetable vendors
- Hawkers selling clothes, shoes, accessories
- Food stall owners & tea sellers
- Cobblers, barbers, and small service providers
- Artisans selling handicrafts
Loan Structure Under PM SVANidhi
| Loan Cycle | Loan Amount | Tenure | Interest Subsidy |
|---|---|---|---|
| 1st Loan | ₹10,000 | 12 months | 7% per annum |
| 2nd Loan | ₹20,000 | 18 months | 7% per annum |
| 3rd Loan | ₹50,000 | 36 months | 7% per annum |
- No collateral or security required
- Loan repayment through EMIs
- No penalty for early repayment
Interest Subsidy & Digital Incentives
- Interest Subsidy:
- 7% per annum on loan repayment, credited quarterly to the borrower’s account.
- Cashback Incentives:
- Vendors earn ₹50 to ₹100 per month for digital transactions through UPI, QR codes, and digital wallets.
- No Prepayment Penalty:
- Vendors can repay early without any extra charge.
How to Apply for PM SVANidhi Scheme?
Street vendors can apply through:
Online Mode (Self-Application)
- Visit the official website: www.pmsvanidhi.mohua.gov.in
- Click on “Apply for Loan”
- Enter Aadhaar Number and verify with OTP
- Fill in business details and upload required documents
- Select preferred bank/lending institution and submit
Offline Mode (Through Banks & CSCs)
- Visit any registered Bank/Urban Local Body/Common Service Center (CSC)
- Fill in the Loan Application Form
- Attach required documents and submit
Documents Required
- Aadhaar Card (linked with mobile number)
- Voter ID or Ration Card (Proof of Residence)
- Street Vendor ID or Letter of Recommendation (LoR)
- Bank Account Details
List of Banks Offering PM SVANidhi Loans
- Public Sector Banks
- (SBI, PNB, Bank of Baroda, Canara Bank, etc.)
- Private Banks
- (HDFC, ICICI, Axis Bank, etc.)
- Regional Rural Banks (RRBs)
- Small Finance Banks & Microfinance Institutions (MFIs)
Benefits of PM SVANidhi Scheme
- Financial Support:
- Provides working capital to small vendors.
- Low-Interest Rate:
- 7% interest subsidy makes loans affordable.
- Easy Digital Repayments:
- Encourages online transactions.
- Multiple Loan Cycles:
- Vendors can access higher amounts in later cycles.
- No Middlemen:
- Direct application through official portals.
- Encourages Entrepreneurship:
- Helps vendors become self-reliant.
Challenges & Issues in Implementation
- Low Awareness:
- Many eligible vendors are unaware of the scheme.
- Limited Digital Literacy:
- Vendors face difficulty in online transactions.
- Bank Rejections:
- Some banks delay loan processing.
- Exclusion of Certain Vendors:
- Unregistered vendors find it hard to qualify.
Government’s Steps to Improve Implementation
- Door-to-door awareness campaigns by ULBs
- Simplified digital application process
- Training vendors in digital transactions
PM SVANidhi Mobile App
- The PM SVANidhi Mobile App helps vendors apply for loans, check status, and make repayments online. Available on Google Play Store.
Conclusion
- The PM SVANidhi Scheme is a game-changer for small vendors, providing them with easy loans, interest subsidies, and digital transaction incentives.
- By promoting financial inclusion and self-reliance, this scheme is helping India’s street vendors rebuild their businesses and livelihoods.
Frequently Asked Questions (FAQs)
- Can a street vendor apply for a second loan without repaying the first one?
- No, vendors must fully repay the first loan before applying for the next cycle.
- Is there any subsidy for vendors who repay the loan on time?
- Yes, vendors get 7% interest subsidy and cashback for digital payments.
- What happens if a vendor fails to repay the loan?
- Defaulting vendors may lose access to future loans under the scheme.
- Can I apply without Aadhaar linked to my mobile number?
- No, Aadhaar must be linked to a mobile number for verification.
