What this scheme offers
PM SVANidhi gives street vendors a first working capital loan of ₹10,000, purely on trust with no collateral or guarantor. On timely repayment, vendors become eligible for ₹20,000 in a second cycle, then ₹50,000 in a third cycle under SVANidhi 2.0 — nudging vendors from informal, high-interest moneylenders into the formal credit system. A 7% per annum interest subsidy is credited directly to the borrower's account quarterly, and vendors who adopt UPI or other digital payments earn cashback of up to ₹100/month (₹1,200/year). Following a July 2025 Cabinet approval, the scheme now runs through 31 December 2027.
Who is eligible
- Urban street vendors, originally those vending on or before 24 March 2020 — later extended to vendors who started after that date too.
- Must hold a Certificate of Vending or Identity Card issued by your local Urban Local Body (ULB).
- Vendors without an ID card can still apply with a Letter of Recommendation (LoR) from the ULB or Town Vending Committee.
- Vendors in peri-urban and semi-urban areas covered by a ULB or Nagar Panchayat are eligible; vendors at purely rural weekly haats are not (they should look at PM Mudra Yojana's Shishu category instead).
- An active Aadhaar-linked bank account is needed for e-KYC and subsidy transfer.
Documents required
- Certificate of Vending / Identity Card (or Letter of Recommendation, if you don't have one)
- Aadhaar card
- Bank account details
- Passport-size photograph
How to apply
- Visit your nearest Urban Local Body (ULB) or Town Vending Committee office to collect your Certificate of Vending or Letter of Recommendation, if you don't already have one.
- Apply online at pmsvanidhi.mohua.gov.in using your Aadhaar-linked mobile number, or visit any participating bank, RRB, MFI or cooperative bank branch.
- Complete the loan application with your personal, business and bank details, attaching self-attested documents.
- The ULB verifies your vendor status, and the lending institution completes basic credit and KYC checks.
- On approval, the first ₹10,000 tranche is disbursed — no application fee is charged at any stage.
- Repay on time to automatically become eligible for the next, larger tranche.