The PM SVANidhi Scheme is a Central Government micro-credit initiative launched on 1 June 2020 by the Ministry of Housing and Urban Affairs (MoHUA). The scheme is designed to support street vendors by providing easy access to collateral-free working capital loans. It helps vendors restart, stabilize, and expand their businesses, especially after economic disruptions such as the COVID-19 pandemic.
The scheme also promotes digital payments, rewarding vendors who adopt cashless transactions through monthly cashback incentives.
Purpose of the Scheme
- To bring street vendors into the formal financial system
- To help vendors expand their businesses and increase income
- To promote self-reliance and entrepreneurship
- To encourage digital transactions across small businesses
Key Features of PM SVANidhi
- Initial loan of ₹10,000 without collateral
- Second and third loan options of ₹20,000 and ₹50,000
- 7% interest subsidy on timely repayment
- Monthly digital transaction cashback up to ₹100
- Available across all States and Union Territories
Benefits for Street Vendors
- Easy access to credit without security
- Low interest burden due to government subsidy
- No processing or application fees
- Flexible usage of loan amount for business needs
- One-year repayment period
- Financial support for vendors affected by COVID-19
- Encourages employment generation and small entrepreneurship
- Improves digital and financial inclusion
Who Can Apply?
Street vendors are involved in selling goods or providing services such as vegetables, fruits, street food, garments, footwear, books, barber services, cobbling, laundry, pan shops, and similar activities.
Eligible Categories
- Vendors holding a Certificate of Vending (CoV) or Identity Card issued by Urban Local Bodies (ULBs)
- Vendors identified in official surveys but not yet issued a CoV or ID
- Vendors issued a Letter of Recommendation (LoR) by ULBs or Town Vending Committees (TVCs)
- Vendors from nearby rural or peri-urban areas operating within ULB limits with valid LoR
Loan Amount and Repayment
- First loan: ₹10,000
- Second loan: ₹20,000 (after successful repayment of first loan)
- Third loan: ₹50,000
- Repayment tenure: 12 months
- Interest subsidy credited directly to the loan account
How to Apply Online
- Visit the official portal: pmsvanidhi.mohua.gov.in
- Click on Log In and enter your mobile number and captcha
- Verify using OTP
- Select the appropriate vendor category
- Enter the Survey Reference Number (SRN)
- Fill in the application form and upload documents
- Apply online
For guidance, applicants can refer to the User Manual available on the portal or call the toll-free helpline: 1800-111-979 (9:30 AM – 6:00 PM, Monday to Saturday).
Offline Application Support
- Collect information about required documents in advance
- Ensure an Aadhaar-linked mobile number for e-KYC
- Confirm eligibility category before applying
- Visit ULB offices or Common Service Centers (CSCs) for assistance
- Offline support also helps in obtaining a Letter of Recommendation, if needed
Documents Required
For First Loan
Category A & B Vendors
- Certificate of Vending (CoV)
- Identity Card
Category C & D Vendors
- Letter of Recommendation (LoR)
KYC Documents (Any One)
- Aadhaar Card
- Voter ID
- Driving Licence
- MNREGA Card
- PAN Card
Documents for Letter of Recommendation
- Bank account statement or passbook copy
- Vendor association membership proof
- Any document proving vending activity
- Request letter to ULB
For Second Loan
- Proof of closure of the first loan
Digital Access Platforms
- Official Portal: pmsvanidhi.mohua.gov.in
- UMANG App
Conclusion
The PM SVANidhi Scheme is a major step toward empowering street vendors by providing affordable credit, promoting digital payments, and helping them build sustainable livelihoods. The scheme strengthens urban informal businesses while supporting India’s vision of AtmaNirbhar Bharat.
Declaration:
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