The PM SVANidhi Yojana (Prime Minister Street Vendor’s AtmaNirbhar Nidhi Scheme) is one of the most impactful government initiatives designed to uplift urban street vendors and make them self-reliant. This micro-credit scheme offers collateral-free loans ranging from ₹10,000 to ₹50,000, along with special benefits like interest subsidies and cashback rewards for digital transactions.
Launched by the Ministry of Housing and Urban Affairs (MoHUA), the scheme aims to support street vendors in restarting their small businesses and achieving long-term economic stability after the pandemic and other financial challenges.
Launch and Objective of PM SVANidhi Yojana
The PM SVANidhi Yojana was officially launched on June 1, 2020, by the Ministry of Housing and Urban Affairs. The primary objective of the scheme is to provide financial support to street vendors in urban areas so that they can rebuild their livelihoods and become economically independent.
The government recognized that street vendors play a vital role in India’s urban economy — from selling fruits, vegetables, and snacks to small services like cobbling or tailoring. However, they often lack access to formal banking systems or credit facilities. PM SVANidhi Yojana bridges this gap by providing easy and affordable loans directly to them.
Loan Structure Under PM SVANidhi Yojana
The scheme provides loans in three stages, allowing vendors to gradually expand their businesses while maintaining repayment discipline:
- First Loan: Up to ₹10,000
- Second Loan: Up to ₹20,000 (after successful repayment of the first loan)
- Third Loan: Up to ₹50,000 (after repaying the second loan on time)
All loans under the PM SVANidhi Yojana are collateral-free, meaning that street vendors do not need to provide any guarantee or security to avail of the credit. This makes it easier for small vendors to access funds without financial stress or the fear of losing assets.
Key Benefits of the PM SVANidhi Scheme
The PM SVANidhi Yojana is not just a loan program — it’s a complete empowerment package for India’s urban street vendors. Here are some of its major benefits:
1. Interest Subsidy
Vendors who repay their loans on time receive an interest subsidy of 7% per annum. The subsidy is credited directly to their bank accounts every quarter, which helps reduce their repayment burden.
2. Cashback on Digital Transactions
To promote the adoption of digital payments, the scheme offers cashback rewards to vendors for using digital modes of transactions. This encourages them to go cashless, build a digital payment history, and access more financial opportunities in the future.
3. Financial Inclusion and Empowerment
By connecting vendors to formal financial institutions, PM SVANidhi Yojana promotes greater financial inclusion. Vendors can now access banking services, improve their credit scores, and expand their small businesses with confidence.
Eligibility Criteria for PM SVANidhi Yojana
The scheme is open to all street vendors operating in urban areas who have been identified through surveys conducted by Urban Local Bodies (ULBs).
Those who possess a Vending Certificate or Identity Card are eligible to apply. Even vendors who were left out during the initial survey can still apply by obtaining a Letter of Recommendation (LoR) from their respective Urban Local Body.
Also read: Pradhan Mantri Ujjwala Yojana Expands: 25 Lakh New LPG Connections to Be Issued
How to Apply for PM SVANidhi Yojana
Applying for the PM SVANidhi Yojana is simple and fully digital. Here are the steps to apply:
- Visit your local Urban Local Body (ULB), Common Service Centre (CSC), or Banking Correspondent (BC).
They will help you with form filling and uploading necessary documents. - You can also apply through the official PM SVANidhi mobile app or web portal.
Applicants need to provide identification details, proof of vending, and basic business information. - Once verified, the loan amount is directly credited to the vendor’s bank account.
The process is transparent, quick, and designed to ensure that even small vendors with limited literacy or technical skills can apply without difficulty.
PM SVANidhi Yojana – A Step Toward AtmaNirbhar Bharat
The PM SVANidhi Yojana has already transformed the lives of millions of street vendors across India by restoring their dignity, income, and independence. The government’s vision behind this initiative aligns with the larger mission of AtmaNirbhar Bharat (Self-Reliant India) — empowering every citizen, no matter how small their enterprise, to achieve economic stability.
Through easy loans, interest benefits, and digital rewards, PM SVANidhi Yojana continues to be a strong symbol of India’s inclusive growth and social progress.
