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PM SVANidhi Scheme: Complete Guide, Benefits, Loan Details, Eligibility, and Application Process

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Street vendors form a vital part of India’s urban economy. They provide essential goods and services at affordable prices and play a key role in the daily functioning of cities. However, these vendors often lack access to formal credit due to absence of documentation, irregular income patterns, and low financial literacy. Traditionally, they have relied on informal moneylenders who charge high interest rates, pushing vendors into financial distress.

To address these challenges, the Government of India introduced the PM SVANidhi Scheme as a dedicated micro-credit facility for street vendors. The scheme offers:

  • Easy access to formal credit
  • No requirement of collateral
  • Affordable interest rates
  • Incentives for digital transactions
  • Interest subsidy for regular repayments
  • Formal identity and recognition through Certificates of Vending

The scheme benefits street vendors across urban areas, peri-urban regions, and census towns. By supporting these micro-entrepreneurs, PM SVANidhi strengthens local economies and promotes self-reliance.

Objectives of the PM SVANidhi Scheme

The main goals of the scheme include:

1. To Provide Collateral-Free Working Capital Loans

Street vendors can access small but meaningful loans for purchasing goods, equipment, or raw materials without needing to pledge any collateral.

2. To Promote Financial Inclusion

The scheme encourages street vendors to interact with formal banks, build credit history, and gain long-term financial security.

3. To Support Business Recovery and Growth

Vendors can use the loan to revive or expand their business operations, especially after economic crises.

4. To Promote Digital Payments

Cashback incentives encourage vendors to adopt digital payment platforms, helping them modernize their operations.

5. To Provide Formal Recognition

Issuing Certificates of Vending ensures that vendors are formally recognized by Urban Local Bodies (ULBs), giving them rights and protection.

6. To Extend Long-Term Credit Support

With the extended lending period up to 2030, vendors can continue to access credit support over time.

Key Features of the PM SVANidhi Scheme

The scheme includes several strong features that make it beneficial and accessible to street vendors across the country.

1. Collateral-Free Loans

One of the biggest advantages of PM SVANidhi is that it provides working capital loans without any collateral. This ensures that even the smallest vendors, who do not own assets or property, can access formal credit.

2. Three Loan Tranches

The scheme offers increasing loan amounts in three stages. Each new tranche becomes available after timely repayment of the previous one:

First Tranche

  • Loan amount: Up to ₹15,000
  • Previously the amount was ₹10,000
  • Offered to all eligible vendors as the first step

Second Tranche

  • Loan amount: Up to ₹25,000
  • Previously ₹20,000
  • Available to vendors who repay the first loan on time

Third Tranche

  • Loan amount: Up to ₹50,000
  • Remains unchanged
  • Available to vendors who repay the second loan regularly

This progressive system helps vendors gradually scale their business and build a strong credit history.

3. Interest Subsidy

The scheme provides a 7% interest subsidy for timely repayment of the loan.
The subsidy is directly credited to the beneficiary’s bank account, significantly reducing the overall repayment burden.

4. Digital Transaction Incentive

To promote digital adoption, vendors can earn a cashback of up to ₹100 per month by performing digital transactions using approved platforms such as QR codes or UPI.

This feature:

  • Encourages vendors to move towards cashless payments
  • Helps them maintain records
  • Improves their financial credibility

5. Expanded Coverage

Originally designed for urban street vendors, the scheme has been expanded to include:

  • Census towns
  • Peri-urban areas
  • Areas governed by Urban Local Bodies

This ensures that sellers operating near urban zones also receive the benefits of formal credit.

6. Extended Lending Period

Recognizing the long-term needs of street vendors, the government has extended the scheme’s lending period up to 31 March 2030.
This provides vendors with many years of support, helping them to stabilize and strengthen their businesses.

Eligibility Criteria

To apply for the loan, a street vendor must meet the following conditions:

1. Certificate of Vending or Identity Card

Vendors must have a Certificate of Vending or Identity Card issued by the Urban Local Body (ULB).

2. Vendors Identified in ULB Surveys

Vendors who were included in ULB surveys but have not yet received formal documentation are still eligible.

3. All Types of Street Vendors

The scheme covers vendors selling:

  • Food and vegetables
  • Fruits
  • Snacks and tea
  • Clothes, utensils, and household goods
  • Mobile service vendors
  • Rehri-patri vendors
  • Small roadside stalls

4. Urban, Peri-Urban, and Census Town Vendors

The scheme includes vendors operating in all regions covered by ULBs.

Benefits of the PM SVANidhi Scheme

The scheme provides multiple benefits beyond just providing loans:

1. Financial Stability

Vendors receive financial support to maintain or grow their business.

2. Reduction in Dependency on Informal Credit

The scheme helps vendors avoid high-interest loans from local moneylenders.

3. Credit Score Development

Regular repayments help vendors build a formal credit history, giving them access to future facilities like home loans or business loans.

4. Encourages Digital Awareness

By promoting cashless transactions, the scheme introduces vendors to digital financial systems.

5. Income Security

With easy loans and low interest, vendors can run their business smoothly without financial stress.

6. Zero Collateral Requirement

Even vendors without any property or assets can access loans.

How to Apply for PM SVANidhi Scheme

The application process is simple and accessible through multiple channels. Street vendors can apply using any of the following four methods:

1. Apply Through the PM SVANidhi Portal

The official portal allows vendors to:

  • Register
  • Fill out the application form
  • Upload required documents
  • Track application status

The portal is designed to be user-friendly and can be accessed on mobile or computer.

2. Apply Through the JanSamarth Portal

The JanSamarth platform offers a streamlined process to apply for government-backed loans. Vendors can log in, fill their details, and choose PM SVANidhi under the available schemes.

3. Apply Through the Nearest Bank Branch

Vendors can visit any of the following:

  • Nationalised banks
  • Regional rural banks
  • Cooperative banks
  • Micro-finance institutions

Bank officials will assist in submitting and processing the application.

4. Apply Using the UMANG App

The UMANG mobile app offers a digital method for application. Vendors can enter details, upload documents, and track progress easily.

Required Documents

Applicants must provide any one of the following ID documents:

  • Aadhaar Card
  • Voter Identity Card
  • Driving Licence
  • MNREGA Job Card
  • PAN Card

Additionally, the Certificate of Vending or survey identification details from the ULB are required.

Step-by-Step Application Guide

Below is a simple step-by-step process to apply for PM SVANidhi:

Step 1: Choose Application Mode

Select whether you want to apply online, through the portal, through the UMANG app, or directly at a bank.

Step 2: Register or log in

Fill basic details like name, mobile number, and address.

Step 3: Fill Application Form

Provide information about your vending business, type of goods sold, and vending location.

Step 4: Upload Documents

Upload identity proof and vending certificate or survey report.

Step 5: Bank Selection

Choose the bank where you want your loan to be processed.

Step 6: Verification

Your application will be verified by:

  • Bank officials
  • Urban Local Body
  • Ministry records

Step 7: Loan Approval

Once approved, the amount is credited directly to your bank account.

Why the PM SVANidhi Scheme Matters

The importance of this scheme lies in its impact on millions of vulnerable street vendors who often remain excluded from mainstream financial systems. It provides:

  • Dignity
  • Recognition
  • Security
  • Financial empowerment
  • Opportunity for business expansion

PM SVANidhi strengthens street economies while promoting a culture of digital inclusion and responsible borrowing.

Long-Term Impact of the Scheme

Over time, the scheme has helped vendors:

  • Improve business turnover
  • Increase savings
  • Adopt digital payment systems
  • Build trust with banks
  • Avoid high-interest informal loans
  • Enhance financial discipline

The extension of the scheme to 2030 ensures continuous support for the entire street vending community.

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