PM SVANidhi Scheme: Eligibility, Benefits, Interest Rate, How To Apply Online

Latest Update: The Union Cabinet has approved for restructuring the PM SVANidhi Scheme with enhanced loan amount limits and digital cashback incentives. Further, the lending period under this scheme has also been extended till 31 March 2030.

The government launched the PM SVANidhi Scheme in 2020 to support street vendors impacted by the COVID-19 pandemic. Under this scheme, the government provides working capital loans at a low-interest rate, interest subsidy and encourages digital transactions. 

Read on to know more about the PM SVANidhi Scheme, its eligibility, benefits and application process.

PM SVANidhi Scheme

The full form of PM SVANidhi is PM Street Vendor’s AtmaNirbhar Nidhi Scheme. The lockdowns due to the COVID-19 pandemic adversely impacted the livelihoods of everyone, especially the street vendors. The street vendors usually work with a small capital base. Their savings and capital base would have been consumed during the lockdown in the country. 

The street vendors are known as vendors, thelewala, hawkers, theliphadwala, rehriwala, etc. in different areas and contexts. They supply goods that include vegetables, ready-to-eat street food, fruits, pakodas, tea, bread, textile, footwear, apparel, artisan products, stationery etc. Their services include barber shops, pan shops, cobblers, laundry services, etc. Thus, an urgent need arose to provide them credit for working capital to resume their business. 

To help the street vendors, the government launched the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme in June 2020 to provide them with credit for working capital. Under this scheme, the street vendors can take collateral-free loans with low-interest rates for one year. 

In August 2025, the Union Cabinet approved for the revamp of this scheme and enhanced loan limits, digital cashback incentives and issued UPI-linked credit cards with a Rs.30,000 limit as announced in the Union Budget 2025. The scheme's total outlay is Rs.7,332 crore, and it aims to benefit 1.15 crore vendors, including 50 lakh new beneficiaries.

Objectives Of PM SVANidhi Scheme

• To facilitate and provide working capital loans up to Rs.10,000 at a subsidised rate of interest, 
• To incentivise regular repayment of the loan, and 
• To reward digital transactions.

Eligibility Criteria Of PM SVANidhi Scheme

The PM SVANidhi scheme is available to every street vendor working in urban areas. It will be expanded to census towns and peri-urban areas in a graded manner. The beneficiaries under this scheme will be identified according to the following criteria:

• Street vendors in possession of an Identity card or Certificate of Vending issued by Urban Local Bodies (ULBs).
• Street vendors identified in the survey but have not been issued the Certificate of Vending or Identity Card. In such cases, the Provisional Certificate of Vending will be generated for the street vendors. 
• Street Vendors left out of the ULB led identification survey or who have started vending after the completion of the survey but have been issued with the Letter of Recommendation (LoR) by the ULB  or Town Vending Committee (TVC). 
• Street vendors of the surrounding development or rural or peri-urban areas vending in the geographical limits of the ULB and have been issued with the Letter of Recommendation (LoR) by the ULB or TVC.

Application For Loan Under PM SVANidhi Scheme

Follow the below process to apply for a working capital loan under the PM SVANidhi Scheme:

1. Go to the PM SVANidhi Scheme website.
2. Navigate to the ‘Apply for Loan’ tab on the homepage and select the loan amount option - ‘Apply for 10K’, ‘Apply for 20K’ or ‘Apply for 50K’.
3. Enter your mobile number, tick the ‘I am not a Robot’ box and click on ‘Request OTP’.
4. Enter the OTP and click on ‘Verify OTP’.
5. Select if you have an Aadhaar card and the category. Enter the required details and click ‘Next’.
6. Enter your Aadhaar number and click on ‘Verify with OTP’. 
7. Enter the OTP and click on ‘Verify’.
8. Fill out the personal information, address details, vendor details, bank account details, loan details, upload document and click on ‘Save’ and then on ‘Submit’.
9. Next, select ‘Bank and Branch’ where you want to the application to be processed and for releasing loan and agree to the declarations and authorisation. Click on ‘Save’ and the ‘Submit’. 
10. You will get the application number.

You can also apply loans under the PM SVANidhi scheme by visiting the Common Service Centres (CSCs). They will help you to fill up the application form and submit it with the required documents.

The KYC documents required to apply for loans are as follows:

• Certificate of Vending or ID card issued by ULBs or Letter of Recommendation from ULB or TVC.
• Any one of the following-
  • Aadhaar card
  • Voter Identity card
  • Driving license
  • MGNREGA card
  • PAN card

Benefits Under PM SVANidhi Scheme

The following are the benefits provided to the urban street vendors under the PM SVANidhi scheme:

Working Capital Loans

The urban street vendors can avail of a Working Capital (WC) loan with a tenure of 1 year repaid in monthly instalments. The loan structure under this scheme has been increased to Rs.15,000 from Rs.10,000 for the first tranche and to Rs.25,000 from Rs.20,000 for the second tranche. Street vendors can also get the third tranche of the loan amount of up to Rs.50,000. 

No collateral is required to avail of this loan. On early or timely repayment of this loan, the street vendors will be eligible for the next cycle of the WC loan with an enhanced limit. There is no charge of prepayment penalty for the repayment of the WC loan before the scheduled date. 

Rate of Interest

In the case of Scheduled Commercial Banks, Small Finance Banks (SFBs), Regional Rural Banks (RRBs), Cooperative Banks and Self-Help Group (SHG) Banks, the rate of interest will be as per their prevailing rates of interest. 

In the case of Non-Banking Financial Company (NBFC), Non-Banking Financial Company-Micro Finance Institution (NBFC-MFIs), etc., the interest rates will be as per the RBI guidelines for the respective lender category. 

In respect of MFIs (non-NBFC) and other lender categories that are not covered under the RBI guidelines, the interest rates would be applicable as per the extent of the RBI guidelines for NBFC-MFIs. 

Interest Subsidy 

The street vendors who avail of WC loan under the scheme can get an interest subsidy at 7%. The interest subsidy amount is credited to the borrower’s account quarterly. The interest subsidy is available on first and the subsequent enhanced loan up to that date. 

Promotion of Digital Transactions by Street Vendors 

This scheme provides an incentive for adopting digital transactions by street vendors through the cash-back facility. The network of lending institutions and the digital payment aggregators such as Paytm, NPCI (for BHIM), GooglePay, AmazonPay, BharatPay, PhonePe, etc., will help to onboard the vendors for digital transactions. The onboarded vendors will receive incentives in the form of a monthly cashback of up to Rs.1,600 on making retail and wholesale transactions.

UPI-Linked Credit Cards

UPI-linked RUPAY Credit Card will be provided to street vendors. They can use this card and get immediate access of credit with a Rs.30,000 limit. This card will help them to meet any urgent business and personal requirements. It is provided for those street vendors who have repaid the second loan taken under this scheme.

Capacity Builiding and Training

This scheme concentrates on building the capacity of the street vendors by focusing on financial literacy, entrepreneurship, digital skills and marketing through convergence. Training would be conducted for street vendors on standard hygiene and food safety, in partnership with FSSAI.

Lok Kalyan Melas

Under this scheme, the ‘SVANidhi se Samriddhi’ component will be strengthened through monthly Lok Kalyan Melas. This ensures holistic welfare and development of the street vendors and their families.