The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi, or PM SVANidhi, gives small working capital loans to street vendors without any collateral. It was launched in June 2020 to help vendors restart their businesses after the Covid lockdown. Here is how it works.
Who runs it
The scheme is run by the Ministry of Housing and Urban Affairs, with loans given by banks, regional rural banks, small finance banks, cooperative banks and microfinance institutions.
Loan tranches
Loans are given in stages. A vendor who repays one loan becomes eligible for a bigger one.
- First loan: a small working capital loan.
- Second loan: a higher amount after repaying the first.
- Third loan: up to Rs 50,000.
In August 2025, the Union Cabinet approved a restructuring and extension of the scheme up to March 2030, raising the first and second loan amounts to Rs 15,000 and Rs 25,000. It also announced a UPI linked RuPay credit card for vendors who repay the second loan. Check the official portal for the current amounts.
Interest subsidy
Borrowers get an interest subsidy of 7 percent a year, credited to their bank account every quarter, if they repay on time.
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Digital cashback
Vendors are encouraged to accept digital payments. Those who make digital transactions can earn cashback up to a yearly limit.
Who is eligible
- Street vendors in urban areas who were vending on or before the cut off date set under the scheme.
- Vendors who hold a Certificate of Vending or identity card issued by the Urban Local Body.
- Vendors identified in a survey but not yet given a certificate can get a provisional certificate or a Letter of Recommendation from the Urban Local Body or Town Vending Committee.
How to apply
- Visit the PM SVANidhi portal or a Common Service Centre.
- Enter your mobile number linked to Aadhaar.
- Fill in personal and business details.
- Upload your vending certificate or Letter of Recommendation.
- Choose a lender and submit.
You can also apply through bank branches and their business correspondents.
SVANidhi se Samriddhi
Under this part of the scheme, vendors and their families are linked to other welfare schemes such as insurance, pension and ration benefits.
Bottom line
PM SVANidhi helps street vendors get formal credit without collateral. Timely repayment unlocks bigger loans, interest subsidy and a path into the formal financial system.
Source / स्रोत: PM SVANidhi portal, Ministry of Housing and Urban Affairs, Ministry of Housing and Urban Affairs, Press Information Bureau
