Introduction
PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) was launched in June 2020 to provide affordable working capital loans to street vendors whose livelihoods were impacted by the COVID-19 pandemic. As of 2026, over 65 lakh vendors have received loans totalling more than ₹8,500 crore. The scheme helps vendors restart their businesses and build a credit history for future formal loans.
Loan Structure
| Loan Tranche | Amount | Interest Subsidy | Tenure |
|---|---|---|---|
| First Loan | ₹10,000 | 7% interest subsidy (effective rate ~0%) | 12 months |
| Second Loan (after timely repayment) | ₹20,000 | 7% interest subsidy | 18 months |
| Third Loan (after timely repayment) | ₹50,000 | 7% interest subsidy | 24 months |
Digital Transaction Incentive
Street vendors who accept digital payments receive a monthly cashback of ₹100 for up to 100 transactions per month. This encourages adoption of UPI, debit cards, and mobile wallets among the street vendor community.
Who is eligible for PM SVANidhi?
Street vendors engaged in vending on or before March 24, 2020, in urban areas are eligible. The vendor must possess a Certificate of Vending issued by the Urban Local Body or have a valid identity proof showing vending activity. Family members of deceased vendors are also eligible.
How do I apply for this scheme?
Visit the PM SVANidhi portal (pmsvanidhi.mohua.gov.in) or approach your nearest bank branch. You need your vending certificate or identification, Aadhaar card, bank account details, and mobile number. The loan is processed within 15 working days.
What happens if I default on repayment?
Timely repayment is essential to qualify for higher loan tranches (₹20,000 and ₹50,000). Defaulters are not eligible for subsequent loans. The 7% interest subsidy is calculated on timely repayment — delayed payments may forfeit the subsidy benefit.
Can I prepay the loan?
Yes, there is no prepayment penalty. Early repayment helps you become eligible for the next higher loan tranche sooner. The interest subsidy is calculated on the outstanding amount and credited quarterly.
What documents are needed for renewal?
For second and third loans, you need proof of timely repayment of the previous loan, continued vending activity proof, updated Aadhaar, and a bank statement showing digital transaction history (for the incentive).