PM SVANidhi: Micro Loans for Street Vendors — How to Apply

The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched in June 2020 to provide affordable working capital loans to street vendors whose livelihoods were disrupted during the COVID-19 pandemic. Since then, it has evolved into a permanent micro-credit programme benefiting millions of informal economy workers.

Loan Structure

• First loan: Up to ₹10,000. Repayment tenure: 1 year.
• Second loan: Up to ₹20,000. Available after timely repayment of the first loan.
• Third loan: Up to ₹50,000. Available after timely repayment of the second loan.

Interest Subsidy

An interest subsidy of 7% per annum is credited quarterly to the vendor’s bank account, effectively reducing the real cost of borrowing. For a ₹10,000 loan, the subsidy amounts to approximately ₹700 per year.

Digital Transaction Incentive

Vendors who make or receive digital payments (UPI, BHIM, Paytm, etc.) earn a monthly cashback of up to ₹100, incentivising the adoption of formal financial behaviour.

Eligibility

• Vendors who were vending in urban areas prior to March 24, 2020.
• Vendors with Certificate of Vending (CoV) or Letter of Recommendation (LoR) from Urban Local Bodies (ULB).
• Vendors without CoV can get a LoR from the TVC (Town Vending Committee).

How to Apply

Apply at pmsvanidhi.mohua.gov.in or through any partnering bank (SBI, Punjab National Bank, Bank of Baroda) or NBFC/MFI. Aadhaar linked to mobile number is required for verification.