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PM SVANidhi: Financial Support Scheme for Street Vendors

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The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a Government of India micro-credit program introduced on 1 June 2020 by the Ministry of Housing and Urban Affairs (MoHUA). The scheme provides easy access to collateral-free working capital loans to street vendors, helping them sustain and grow their small businesses.

In addition to financial assistance, the scheme promotes cashless transactions by encouraging vendors to adopt digital payment methods through monthly cashback incentives.

Objective of the Scheme

  • To integrate street vendors into the formal banking system
  • To strengthen small urban businesses
  • To encourage self-employment and economic independence
  • To increase the use of digital payment platforms

Key Scheme Highlights

  • Initial loan assistance of ₹10,000
  • Higher follow-up loans of ₹20,000 and ₹50,000
  • 7% interest subsidy on timely repayment
  • Monthly digital transaction reward up to ₹100
  • No collateral or security required
  • Nationwide coverage across all States and Union Territories

Advantages for Vendors

  • Easy and affordable access to credit
  • No application or processing charges
  • Flexible use of funds for business needs
  • One-year repayment period
  • Financial recovery support after the COVID-19 impact
  • Encourages entrepreneurship and job creation
  • Improves financial stability and digital inclusion

Eligible Beneficiaries

The scheme is open to street vendors selling goods or providing services such as food items, fruits, vegetables, garments, footwear, books, barber services, cobblers, laundry services, tea stalls, pan shops, and similar activities.

Eligibility Categories

  • Vendors holding a Certificate of Vending (CoV) or Identity Card issued by Urban Local Bodies (ULBs)
  • Vendors identified in official surveys but awaiting documentation
  • Vendors issued a Letter of Recommendation (LoR) by ULBs or Town Vending Committees
  • Vendors from peri-urban or rural areas operating within ULB limits with valid LoR

Loan Details and Repayment

  • First-time loan amount: ₹10,000
  • Second loan: ₹20,000 (after repayment of first loan)
  • Third loan: ₹50,000
  • Repayment tenure: 12 months
  • Interest subsidy credited directly to the loan account

Online Application Steps

  1. Visit the official website: pmsvanidhi.mohua.gov.in
  2. Click on Login and enter your mobile number
  3. Verify using OTP
  4. Choose the appropriate vendor category
  5. Enter your Survey Reference Number (SRN)
  6. Complete the application form and upload documents
  7. Submit the application

For assistance, applicants can refer to the user guide on the portal or contact the helpline at 1800-111-979 (9:30 AM – 6:00 PM, Monday to Saturday).

Offline Application Assistance

  • Keep all required documents ready before applying
  • Ensure your mobile number is linked with Aadhaar for e-KYC
  • Confirm eligibility category in advance
  • Visit ULB offices, Common Service Centers (CSCs), or designated banks for help
  • Offline support can also help in obtaining a Letter of Recommendation

Required Documents

For First Loan

Category A & B Vendors

  • Certificate of Vending
  • Identity Card

Category C & D Vendors

  • Letter of Recommendation

KYC Documents (Any One)

  • Aadhaar Card
  • Voter ID Card
  • Driving Licence
  • MNREGA Card
  • PAN Card

Documents for Letter of Recommendation

  • Bank passbook or account statement
  • Proof of vendor association membership
  • Any document proving vending activity
  • Request letter addressed to ULB

For Second Loan

  • Proof of closure of the previous loan

Access Points

Final Overview

The PM SVANidhi Scheme plays a crucial role in empowering street vendors by offering affordable credit, promoting digital payments, and strengthening livelihoods. It supports India’s vision of self-reliant urban entrepreneurship.

Declaration:

ejobupdate.in is not affiliated with any government agency, official department, or authority. The information provided in this post/website is for informational purposes only. We are not answerable for any damages or errors related to the use of our content. Aspirants should always verify the information directly from the official website or notification before taking any action.