PM SVANidhi (PM Street Vendor’s AtmaNirbhar Nidhi) Scheme: A Complete Guide

Street vendors form an essential part of India's urban economy, yet many of them have limited access to formal credit. The PM SVANidhi scheme was launched to bridge this gap by offering collateral-free working capital loans to vendors across urban and semi-urban areas. Whether you are a vendor looking to restart your business or someone helping a vendor navigate the process, this guide covers everything you need to know.

What is PM SVANidhi?

PM SVANidhi stands for Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi. It is a central sector scheme launched on 1 June 2020 by the Ministry of Housing and Urban Affairs (MoHUA), Government of India. The scheme was designed to provide affordable, collateral-free working capital loans to street vendors who were adversely affected by the COVID-19 pandemic.

The scheme goes beyond just credit access. It aims to bring street vendors into the formal financial system, encourage digital transactions and help them build a credit history for future borrowing.

Key Facts

Why Was the PM SVANidhi Scheme Launched?

The COVID-19 pandemic and the subsequent lockdowns severely disrupted the livelihoods of street vendors across India. These vendors, often referred to as hawkers, thelewala, rehriwala depending on the region, typically operate with a small capital base. The lockdown period depleted whatever savings or working capital they had.

Street vendors supply a wide range of goods and services. These include vegetables, fruits, ready-to-eat food, tea, bread, footwear, apparel, artisan products and services such as barbering, cobbling and laundry. Their contribution to urban economies is significant, yet they remained largely outside the formal credit system.

The PM SVANidhi scheme was introduced as part of the Atmanirbhar Bharat Abhiyan to address this gap. It provides formal credit access, promotes digital adoption and supports the long-term economic inclusion of this segment.

Latest Updates on the PM SVANidhi Scheme

The Union Cabinet, chaired by the Prime Minister, approved the restructuring and extension of the scheme in August 2025. Several important changes were introduced as part of this restructuring.

The lending period has been extended beyond December 2024 up to 31 March 2030. The loan amounts for the first and second tranches have been increased. A UPI-linked RuPay Credit Card has been introduced for vendors who have repaid their second loan. The scheme now also covers census towns and peri-urban areas in a graded manner.

Loan Structure Under PM SVANidhi

The scheme provides working capital loans in three tranches. Each subsequent tranche is disbursed only after the full repayment of the previous one. All loans are collateral-free and repayable through monthly instalments.

The following table outlines the restructured loan amounts and tenures:

Note: Pre-payment is permitted without any penalty. There is no processing fee under this scheme.

If you are a small business owner or self-employed individual looking to understand how loan repayments work, using a Business Loan EMI Calculator can help you plan your monthly outflows more effectively.

Also Read: Everything you need to know about Business Loan – A definitive guide

Interest Rate and Subsidy Under PM SVANidhi

The interest rate applicable to loans under this scheme varies depending on the type of lending institution. For Scheduled Commercial Banks, Small Finance Banks, Regional Rural Banks, Cooperative Banks and Self-Help Group Banks, the rate is as per their prevailing rates. For Non-Banking Financial Companies and Micro Finance Institutions, the rate is as per RBI guidelines for the respective category.

Interest Subsidy

Vendors who repay their loans on time are eligible for an interest subsidy of 7% per annum. This subsidy is credited directly to the borrower's bank account on a quarterly basis. The subsidy is available only for loan accounts classified as standard (non-NPA) as per prevailing RBI guidelines.

The maximum eligible subsidy amounts tranche-wise are as follows:

All loans disbursed up to 31 March 2030 are eligible for the interest subsidy. Lending institutions must claim the subsidy for a quarter in the subsequent quarter itself, and all claims must be submitted before 31 March 2033.

Digital Transaction Cashback

One of the most rewarding features of PM SVANidhi is the cashback that vendors earn simply by accepting digital payments. It's the government's way of encouraging street vendors to move away from cash and become part of the formal digital economy.

Under the restructured scheme, vendors can earn cashback in two ways:

• On regular sales (retail): Up to ₹100 per month, which adds up to ₹1,200 in a year.
• On wholesale purchases: ₹20 per transaction (on purchases of ₹2,000 or more), with a cap of ₹100 per quarter — adding up to ₹400 annually.

This cashback structure is designed to boost digital adoption among street vendors. As a bonus, going digital also helps vendors build a transaction history, which can support their case when applying for higher loan amounts in the next tranche.

UPI-based platforms support vendors in getting onboarded for digital payments, making the transition as smooth as possible.

UPI-Linked RuPay Credit Card

The restructured PM SVANidhi scheme comes with an exciting new benefit — a UPI-linked RuPay Credit Card for eligible vendors.

This card is available to vendors who have successfully and timely repaid their second tranche loan. It gives them quick access to credit for urgent business needs or personal emergencies — without the hassle of applying for a new loan every time.

Key details of the card:

• It is a domestic RuPay card linked to the vendor's UPI ID
• It also comes with digital cashback benefits on transactions

Note: The original content mentioned a credit limit of ₹10,000 to ₹30,000 and a 5-year validity, but these specific details are not confirmed in the official PIB references provided. It's best to verify these figures directly from the official PM SVANidhi portal (pmsvanidhi.mohua.gov.in) before publishing.

Eligibility Criteria for PM SVANidhi

The scheme is designed to cover a wide range of street vendors operating in urban and semi-urban areas. Under the restructured scheme, a city-region approach has been adopted to progressively expand coverage to census towns and peri-urban areas.

Vendors are identified based on the following criteria:

• Vendors who have a valid Certificate of Vending (CoV), Identity Card, or Letter of Recommendation (LoR) issued by Urban Local Bodies (ULBs) or Town Vending Committees (TVCs)
• Vendors who were identified in ULB surveys but haven't yet received a CoV or Identity Card — they are issued a Provisional Certificate of Vending
• Vendors not covered in ULB surveys, or those who started vending after the survey, if they hold an LoR from the ULB or TVC
• Vendors from peri-urban or rural areas who operate within ULB limits and hold an LoR from the ULB or TVC
• Vendors in census towns or peri-urban areas with an LoR approved by their Block Development Officer (BDO)

The minimum age to apply is 18 years. There is no upper age limit.

Documents Required to Apply

Applicants must keep the following documents ready before submitting their application:

• Certificate of Vending, Identity Card or Letter of Recommendation from ULB or TVC
• Aadhaar card (mandatory for most states)
• Voter Identity Card (applicable for vendors from Assam and Meghalaya who do not have an Aadhaar card)
• Savings bank account passbook or bank statement with account details
• Valid and unique UPI ID linked to the vendor's bank account

For vendors applying with an LoR, additional documents may be required, such as a copy of the bank account statement, membership card of a vendor association or any document supporting the vending claim.

Note: All LoRs must be applied for and issued through the official PM SVANidhi Portal. Manually issued LoRs are not valid.

How to Apply for PM SVANidhi Online

The application process is straightforward and can be completed either online or offline.

Online Application Process

Follow these steps to apply through the official portal:

1. Visit the official PM SVANidhi portal at pmsvanidhi.mohua.gov.in
2. Click on the "Apply for Loan" tab and select the relevant loan amount option
3. Enter your registered mobile number and complete the captcha verification
4. Request and enter the OTP to verify your mobile number
5. Select your vendor category and enter the required Survey Reference Number (SRN)
6. Complete the application form with personal, address, vendor and bank account details
7. Upload the required documents and submit the application
8. Select the bank and branch where you want the loan to be processed
9. Agree to the declarations and submit. You will receive an application number upon successful submission

Offline Application Process

Vendors who are not comfortable with online processes can visit the nearest Common Service Centre (CSC). CSC staff will assist with filling out the application form and submitting it along with the required documents.

A toll-free helpline (1800 111 979) is also available during operational hours for guidance and queries.

How to Check Your PM SVANidhi Loan Status

Once you have submitted your application, you can track its progress online. Visit the official PM SVANidhi portal and navigate to the "Know Your Application Status" section. Enter your application number, registered mobile number and the OTP received to view the current status of your application.

This online tracking system ensures transparency and allows applicants to stay informed without needing to visit a branch or office.

Capacity Building and Welfare Initiatives

The PM SVANidhi scheme is not limited to financial support. It also focuses on building the overall capacity of street vendors and their families.

Training programmes are conducted on financial literacy, entrepreneurship, digital skills and marketing. In partnership with the Food Safety and Standards Authority of India (FSSAI), training is also provided on standard hygiene and food safety practices.

The "SVANidhi se Samriddhi" component of the scheme is strengthened through monthly Lok Kalyan Melas. These events ensure holistic welfare and development of vendors and their families, covering access to social security schemes and other government benefits.

Lending Institutions Under PM SVANidhi

Loans under this scheme are disbursed through a wide network of lending institutions. These include:

• Scheduled Commercial Banks
• Regional Rural Banks
• Small Finance Banks
• Cooperative Banks
• Self-Help Group Banks
• Non-Banking Financial Companies (NBFCs)
• Micro Finance Institutions (MFIs)

The scheme is implemented jointly by the Ministry of Housing and Urban Affairs and the Department of Financial Services.

Credit Guarantee Coverage

The scheme provides graded credit guarantee cover to lending institutions through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The guarantee is operated on a portfolio basis.

This guarantee structure reduces the risk for lending institutions and encourages broader participation in the scheme.

Also Read: Credit Guarantee Scheme: Benefits & Eligibility Guide

Challenges in Accessing the Scheme

PM SVANidhi has helped millions of street vendors — but not everyone who's eligible has been able to benefit from it yet. Here's a look at some common roadblocks, and what's being done to fix them.

Not everyone knows about the scheme: Many vendors, especially in smaller towns and cities, simply haven't heard of PM SVANidhi. And even those who have may not know how to apply. Spreading the word remains one of the biggest challenges.

Paperwork can be a hurdle: Some vendors don't have formal identity documents or proof of vending. Without these, applying for the scheme can feel difficult or confusing — even if they are otherwise eligible.

Digital payments aren't second nature for everyone: The cashback incentive is a great benefit — but only if vendors are comfortable using UPI or other digital payment tools. For those who've never used a smartphone for payments, this can feel like a big step.

What's being done about it : These challenges are being actively addressed. Awareness camps and community training sessions are being organised to reach more vendors. Urban Local Bodies (ULBs) and Common Service Centres (CSCs) are providing on-ground support. In many cities, NGOs and local bodies are also stepping in to help vendors with their documents and online applications — so no eligible vendor has to navigate the process alone.

Final Thoughts

The PM SVANidhi scheme represents a meaningful step towards financial inclusion for one of India's most underserved economic segments. By providing collateral-free loans, interest subsidies and digital transaction incentives, the scheme helps street vendors rebuild their livelihoods and enter the formal economy.

For vendors who successfully complete multiple loan cycles, the scheme opens the door to larger credit facilities and a stronger financial foundation. If you or someone you know is eligible, exploring this scheme could be a valuable step towards long-term business stability.

For small business owners and self-employed individuals looking to grow beyond the scope of government schemes, a Business Loan from Godrej Finance Limited can provide the working capital needed to scale operations. You can also use the Business Loan EMI Calculator to plan your repayments before applying.

Apply now for a Business Loan.

FAQs

Q.1. Who is eligible to apply for a PM SVANidhi loan?

A. Street vendors operating in urban areas who hold a Certificate of Vending, Identity Card or Letter of Recommendation from an Urban Local Body or Town Vending Committee are eligible. Vendors from peri-urban and census town areas may also qualify under the restructured scheme.

Q.2. What is the maximum loan amount available under PM SVANidhi?

A. The maximum loan amount is ₹50,000, available in the third tranche. The first tranche offers up to ₹15,000 and the second tranche offers up to ₹25,000. Each tranche is disbursed only after full repayment of the previous one.

Q.3. Is there any interest subsidy under the PM SVANidhi scheme?

A. Yes. Vendors who repay their loans on time receive an interest subsidy of 7% per annum. This subsidy is credited directly to the borrower's bank account on a quarterly basis and is available only for standard loan accounts.

Q.4. Can a vendor apply for PM SVANidhi without an Aadhaar card?

A. Vendors from Assam and Meghalaya who do not have an Aadhaar card can use a Voter Identity Card as an alternative KYC document. For all other states, Aadhaar is the primary identity document required for the application.

Q.5. How long is the PM SVANidhi scheme valid?

A. The lending period under the PM SVANidhi scheme has been extended up to 31 March 2030. Liabilities related to interest subsidy and digital transaction incentives will be serviced until 31 March 2033. Credit guarantee claims for the credit card will be serviced until 31 March 2035.

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