PM SVANidhi : The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is a central-sector micro-credit scheme launched on 1st June 2020 by the Ministry of Housing and Urban Affairs (MoHUA). It is designed to provide financial support to street vendors who were affected by the COVID-19 pandemic and to help them restart, sustain, and grow their businesses.
This Article explains the aim, benefits, eligibility, documents required, and the step-by-step application process for PM SVANidhi in simple words.
What is PM SVANidhi?
PM SVANidhi provides collateral-free working capital loans to street vendors in three stages: –
- First Loan: ₹10,000,
- Second Loan: ₹20,000,
- Third Loan: ₹50,000.
The scheme also offers a 7% interest subsidy and cashback of up to ₹100 per month for those who make digital transactions.
Aim of the Scheme
The main aim of PM SVANidhi is to formalize street vendors and provide them financial support to improve their livelihood.
Street vendors form an important part of the urban informal economy, ensuring daily essentials like vegetables, fruits, snacks, clothes, footwear, books, and services like barber shops, cobblers, laundry, etc.
Benefits of PM SVANidhi
| Benefit | Details |
|---|---|
| Financial Assistance | Loan up to ₹10,000 (first), ₹20,000 (second), ₹50,000 (third) |
| Interest Subsidy | 7% subsidy on timely repayment |
| Collateral | No collateral required |
| Processing Fee | No processing fee |
| Repayment Period | 1 year |
| Digital Incentives | Cashback up to ₹100 per month for digital transactions |
| Accessibility | Available in all States & UTs |
| Purpose | Can be used for raw materials, equipment, rent, or other business needs |
Eligibility for PM SVANidhi
Street vendors who fall into the following categories are eligible:
- Vendors with a Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs).
- Vendors identified in the ULB survey but not yet issued an ID.
- Vendors left out of the survey but given a Letter of Recommendation (LoR) by the ULB or Town Vending Committee.
- Vendors from surrounding rural or peri-urban areas who have an LoR and operate within ULB limits.
Documents Required
For First Loan (₹10,000):
- Category A & B Vendors: Certificate of Vending / ID card.
- Category C & D Vendors: LoR from ULB/TVC. KYC Documents (any one): Aadhaar, Voter ID, Driving License, MNREGA Card, PAN card.
For LoR Application:
Account Statement / Passbook copy, Membership Card or proof of vendor membership, Supporting document for vending activity, Request letter to ULB.
For Second Loan (₹20,000):
Loan closure document of the first loan.
How to Apply for PM SVANidhi
Online Process:
- Visit: pmsvanidhi.mohua.gov.in
- Click Log In and enter mobile number + captcha.
- Request OTP and verify login.
- Select vendor category and enter Survey Reference Number (SRN).
- Fill out the application form, upload documents, and submit.
- You can also apply via the UMANG App.
Offline Process
Visit your local Urban Local Body (ULB) office with the required documents. Submit your application form with ID proof and supporting papers.
Helpline for Assistance
- Toll-Free Number: 1800 111 979
- Timing: 9:30 AM – 6:00 PM (Monday to Saturday, except national holidays)
Frequently Asked Questions (FAQs)
Q. What is the maximum loan under PM SVANidhi?
A. Up to ₹50,000 in three stages.
Q. What is the interest rate on PM SVANidhi loans?
A. 7% interest subsidy is provided.
Q. Is collateral required?
A. No, the loan is collateral-free.
Q. Can I apply if I missed the ULB survey?
A. Yes, with a Letter of Recommendation (LoR) from ULB/TVC.
Q. What is the repayment period?
A. 12 months for each loan stage.
Q. Can the loan be used for any purpose?
A. Yes, for all business-related expenses like raw materials, equipment, or rent.
Conclusion
The PM SVANidhi scheme is a major initiative to support street vendors across India. By providing easy access to collateral-free loans, digital incentives, and formal recognition, the scheme helps them become self-reliant and financially stable. If you are a street vendor, don’t miss this opportunity. Apply online at pmsvanidhi.mohua.gov.in and take your business to the next level.
2 thoughts on “PM SVANidhi : Easy Loan for Street Vendors, Eligibility, Benefits & Apply Online”