The central government’s flagship initiative — Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) — continues to empower small business owners and street vendors across India. Launched on June 1, 2020, the scheme aims to promote self-reliance by providing easy access to working capital loans without any collateral.
Purpose and Objective
The PM SVANidhi scheme was introduced to offer vital financial support to street vendors and small-scale entrepreneurs affected by the pandemic and economic challenges. By ensuring timely financial assistance, the scheme helps them restart, expand, or strengthen their businesses and promote entrepreneurship at the grassroots level.
Key Features
Under the PM SVANidhi scheme, eligible street vendors can avail of collateral-free working capital loans of up to ₹15,000, ₹25,000, and ₹50,000.
- Borrowers who repay their loans on time receive a 7% annual interest subsidy.
- Vendors can also earn cashback benefits of up to ₹1,600 for conducting digital transactions.
- No prepayment penalty is charged if the borrower wishes to repay the loan before the due date.
Eligibility Criteria
The scheme is open to vendors who possess a Certificate of Vending or an Identity Card issued by their respective Urban Local Body (ULB).
- Vendors identified in the ULB survey but not yet issued certificates can obtain a Provisional Certificate of Vending through the official IT platform.
- Those left out of the survey or who started their business later can still apply using a Letter of Recommendation (LoR) from the ULB or the Town Vending Committee (TVC).
- Street vendors in rural or semi-urban areas near city limits are also eligible through the LoR process.
How to Apply
Applications can be made online via the official PM SVANidhi portal or by visiting the nearest Common Service Center (CSC).
The loans are disbursed through multiple financial institutions, including:
- Scheduled Commercial Banks
- Regional Rural Banks
- Small Finance Banks
- Cooperative Banks
- Non-Banking Financial Companies (NBFCs)
- Microfinance Institutions
- Self-Help Group (SHG) Banks
Documents Required
Applicants must provide basic KYC documents such as:
- Aadhaar Card
- Voter ID
Other valid documents include PAN Card, Driving License, or MNREGA Card.
