Last Updated on October 9, 2025 12:56:06 PM by Vivek Makwana
1️⃣ Introduction
Learn all about the PM-SVANidhi Yojana — a government scheme offering up to Rs50,000 loan for street vendors. Know eligibility, benefits, and step-by-step online application process. In India, street vendors play a vital role in keeping our cities alive and buzzing with daily activity. From selling fruits 🍎 and vegetables 🥦 to running small tea stalls ☕, these hardworking vendors support millions of families. However, during the pandemic, many of them struggled to rebuild their businesses.
To empower such vendors, the Government of India launched the PM-SVANidhi Yojana (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) — a financial support scheme that helps street vendors access affordable working capital loans 💰.
If you are a street vendor or self-employed small trader, this guide will help you understand how to apply for the PM-SVANidhi loan online, check eligibility, and get up to Rs50,000 in 2025.
2️⃣ What Is PM-SVANidhi Yojana?
The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM-SVANidhi) was launched in June 2020 by the Ministry of Housing and Urban Affairs (MoHUA).
The goal of the scheme is simple — to provide collateral-free loans to street vendors so they can restart or expand their businesses after financial hardships.
Under the scheme, vendors can get loans in three stages:
- First Loan: Rs10,000
- Second Loan: Rs20,000 (after successful repayment)
- Third Loan: Rs50,000 (for vendors with good credit history and digital transactions)
This means vendors who repay on time and use digital payments can enjoy bigger loan amounts and better credit access over time 📈.
3️⃣ Key Features and Benefits
Here are the main highlights and benefits of the PM-SVANidhi Yojana:
| Feature | Description |
| 💵 Loan Amount | Rs10,000 → Rs20,000 → Rs50,000 (increasing with repayment) |
| 🏦 Type of Loan | Working capital loan without collateral |
| 💳 Interest Subsidy | 7% per annum subsidy credited quarterly |
| 📱 Digital Cashback | Cashback of up to Rs100/month for using digital payments |
| 🕒 Loan Tenure | Up to 12 months with easy EMI repayment |
| 🚫 No Collateral | No guarantee or security required |
| 💡 Credit Record | Builds a formal credit history for future loans |
This scheme not only gives financial help but also brings vendors into the formal banking system, enabling them to grow their business sustainably.
4️⃣ Eligibility Criteria
To apply for the PM-SVANidhi loan, the applicant must fulfill the following conditions:
✅ Must be an Indian citizen and engaged in street vending or similar activity.
✅ Must be vending on or before 24 March 2020 in an urban area.
✅ Should have a Certificate of Vending or Identity Card issued by the Urban Local Body (ULB).
✅ Vendors not covered in ULB surveys can apply using a Letter of Recommendation (LoR) from the Town Vending Committee or ULB.
✅ Must have a bank account and valid Aadhaar number linked with a mobile number.
5️⃣ Required Documents
Before starting the online application, keep these documents ready for a smooth process:
📄 Aadhaar Card (linked with mobile number)
📄 Voter ID or any other valid identity proof
📄 Certificate of Vending or Letter of Recommendation (LoR)
📄 Bank account details (account number, IFSC code)
📄 Passport-size photograph
📄 Address proof (ration card, electricity bill, etc.)
6️⃣ Step-by-Step Online Application Process
Follow these simple steps to apply for the PM-SVANidhi loan online:
Step 1: Visit the Official Portal
Go to the official website — https://www.pmsvanidhi.mohua.gov.in/
Step 2: Click on “Apply for Loan”
On the homepage, click on “Apply for Loan” or “Vendor Application Form.”
Step 3: Enter Your Mobile Number
Enter your mobile number and the displayed captcha, then verify it with OTP.
Step 4: Provide Aadhaar Verification
Choose Aadhaar-based verification and enter your Aadhaar number. You’ll receive another OTP for confirmation.
Step 5: Fill in Application Details
Provide the following details carefully:
- Full name, gender, date of birth
- Type of vending activity (vegetables, food, etc.)
- Business location and city name
- Bank account details (for loan disbursement)
Step 6: Upload Documents
Attach your ID proof, certificate of vending/LoR, and photograph.
Step 7: Choose Lending Institution
Select the bank or lending partner (such as SBI, BoB, HDFC, or local cooperative bank).
Step 8: Submit the Application
After verifying all information, click on “Submit.” You will get an Application Reference Number to track your loan status.
Step 9: Wait for Verification and Approval
Your documents will be verified by the Urban Local Body and the chosen bank. Once approved, the loan amount will be credited directly to your account 💰.
Step 10: Track Your Application Status
You can track your loan status anytime by visiting the same portal or through the UMANG App (under PM-SVANidhi section).
7️⃣ Loan Repayment and Subsidy Details
The loan can be repaid in monthly EMIs over 12 months. If you repay on time, you’ll receive:
✅ 7% annual interest subsidy, credited quarterly into your bank account.
✅ Eligibility for next loan slab (Rs20,000 or Rs50,000).
✅ Cashback rewards of Rs50–Rs100 per month for using digital payments like UPI or QR code.
For example, if you pay through BHIM, Paytm, or any QR-enabled UPI app, you’ll get cashback incentives.
8️⃣ PM-SVANidhi 2.0: What’s New in 2025
The government has extended the scheme under PM-SVANidhi 2.0, offering several new benefits:
⭐ Higher loan amount: Vendors with good repayment history can get up to Rs50,000.
⭐ UPI-linked digital credit cards are being introduced for seamless transactions.
⭐ Special focus on women vendors and those from smaller towns.
⭐ Integration with DigiLocker and Jan Dhan accounts for easy verification.
⭐ Simplified LoR process for vendors who were missed in previous surveys.
This upgraded version aims to reach more vendors and improve financial inclusion in India.
9️⃣ Common Mistakes to Avoid
🚫 Entering wrong Aadhaar or bank details — leads to rejection.
🚫 Uploading unclear or incomplete documents.
🚫 Not checking the status regularly after submission.
🚫 Missing EMI payments — affects your eligibility for higher loan amounts.
🚫 Using unlinked mobile numbers (not connected to Aadhaar).
Tip 💡: Always double-check your form before final submission and keep your mobile number active for OTPs and updates.
🔟 FAQs
Q1. What is the maximum loan amount under PM-SVANidhi?
👉 You can get up to Rs50,000 in three stages (Rs10,000, Rs20,000, and Rs50,000).
Q2. Is collateral or guarantor required?
👉 No. The loan is 100% collateral-free.
Q3. What is the interest rate for the loan?
👉 Interest rates vary by bank, but a 7% subsidy is provided by the government.
Q4. Who can apply for this scheme?
👉 Any street vendor operating in an urban area before March 24, 2020, with valid vending documents or LoR.
Q5. How long does it take to get the loan?
👉 Usually within 15–30 days after successful document verification.
Q6. Can I reapply after repaying the first loan?
👉 Yes! Once you repay your first loan on time, you can apply for a higher amount in the next phase.
💬 Final Thoughts
The PM-SVANidhi Yojana is a life-changing initiative for India’s street vendors, offering easy access to credit, digital incentives, and a path to financial growth.
If you are a street vendor or know someone who is, don’t miss this opportunity to apply online and benefit from this government-backed scheme. A small loan today can help build a stronger, self-reliant tomorrow 🇮🇳.
👉 Visit the official portal: https://www.pmsvanidhi.mohua.gov.in/ and apply today!
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