PM SVANidhi Yojana 2025: Apply PM Svanidhi Loan

PM SVANidhi Yojana : The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, launched by the Government of India, has emerged as a lifeline for millions of small vendors and hawkers across the nation. This initiative provides collateral-free working capital loans to help them restart and grow their businesses, especially after the economic disruption caused by the COVID-19 lockdown.¹

WhatsApp Channel Join Now

Instagram Channel Join Now

Table of Contents

What is PM SVANidhi Yojana?

PM SVANidhi is a special micro-credit facility scheme introduced by the Ministry of Housing and Urban Affairs (MoHUA), Government of India.²

Feature	Detail
Scheme Name	Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)
Launched In	June 2020
Core Objective	To provide financial assistance to street vendors and hawkers to resume their livelihoods.
Loan Type	Working Capital Loan (Collateral-Free)
Official Website	pmsvanidhi.mohua.gov.in

The primary goal is to empower these small traders, foster formalization of the sector, and encourage digital transactions.³

Key Benefits of the PM SVANidhi Scheme

The scheme is designed with several vendor-friendly incentives to encourage timely repayment and financial growth.⁴

1. Collateral-Free Loans (No Guarantee)

Vendors can avail of the working capital loan without providing any security or guarantee. This is a significant relief for small traders who often lack assets to pledge.

2. Progressive Loan Ladder

The scheme encourages financial discipline by offering higher loan amounts upon timely repayment:⁵

First Loan: Up to ₹10,000
Second Loan: Up to ₹20,000 (After timely repayment of the first loan)⁶
Third Loan: Up to ₹50,000 (After successful repayment of the second loan)⁷

3. Interest Subsidy

A significant benefit is the 7% per annum Interest Subsidy.⁸ This amount is credited directly to the beneficiary’s bank account every quarter via Direct Benefit Transfer (DBT), effectively lowering the loan cost.

4. Digital Payment Cashback

To promote a shift towards a digital economy, vendors who accept and/or make payments using digital methods (like QR codes or UPI) are eligible for cashback rewards ranging from ₹50 to ₹100 per month.⁹ This also helps them build a strong transaction history.

Eligibility Criteria for Street Vendors

To apply for the PM SVANidhi loan, an individual must meet the following criteria:

Vending Date: Must have been engaged in street vending before March 24, 2020.
Location: Vendors from both urban and rural areas are eligible.¹⁰
Documentation: Must possess a Certificate of Vending (CoV) issued by the Urban Local Body (ULB)/local municipality.
Alternative Document: Those without a CoV can apply with a Letter of Recommendation (LoR) from the ULB, which validates their vending status.¹¹

Loan Repayment and Structure

The repayment structure is simple and designed to support the vendor’s financial stability.

Repayment Period: The first loan of ₹10,000 has a repayment period of 12 months.
Encouragement: Timely or early repayment is crucial, as it is the only way to become eligible for the subsequent, higher-value loans of ₹20,000 and ₹50,000.

Loan Phase	Amount (Up to)	Repayment Period	Eligibility Requirement
1st Phase	₹10,000	12 months	Must meet basic eligibility criteria
2nd Phase	₹20,000	Varies (e.g., 18 months)	Timely repayment of the 1st loan
3rd Phase	₹50,000	Varies (e.g., 36 months)	Successful completion of the 2nd loan

How to Apply for PM SVANidhi Yojana Online

The application process is straightforward and can be completed online:

Visit the Official Portal: Go to the official PM SVANidhi website at pmsvanidhi.mohua.gov.in.
Access Application: Click on the “Apply Loan” link on the homepage.
Fill the Form: Complete the detailed online application form with accurate personal, business, and contact information.
Upload Documents: Upload the required documents, which typically include:
- Aadhaar Card
- Bank Passbook
- Voter ID
- Certificate of Vending (CoV) or Letter of Recommendation (LoR)
Submission and Verification: Submit the form. The application will undergo verification by the ULB and the Lending Institution (bank/NBFC/MFI).
Disbursement: Upon successful verification and sanction, the loan amount will be credited directly to the beneficiary’s bank account.¹²

Impact and Conclusion

The PM SVANidhi Yojana 2025 is more than just a loan scheme; it is a comprehensive economic empowerment tool.¹³ Its successful implementation across states, including Gujarat (in cities like Ahmedabad, Surat, and Vadodara), has demonstrated its role in formalizing the street vending economy.¹⁴ It offers a golden opportunity for small traders to rebuild their livelihoods, achieve financial independence, and secure their future through manageable, collateral-free credit and incentives for digital adoption.¹⁵

If you are an eligible street vendor or hawker looking to restart or expand your business, this scheme provides a robust platform for growth. Apply today to take advantage of this government initiative!

Apply online	Click here
Home page	Click here