The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is a micro-loan scheme launched by the Central Government of India to support street vendors impacted by COVID-19. This scheme provides interest-free loans, subsidized interest, and encourages them to accept digital UPI India. The scheme was specially launched for street vendors of India. Street vendors play a significant role in the lives of India's urban population. Street vendors are responsible for delivering affordable goods and services directly to the doorsteps of city dwellers. Some of the goods supplied to them include vegetables, fruits, ready-to-eat street foods, milk, and artisan products.   

What is PM SVANidhi Loan Scheme? 

The PM SVANidhi loan scheme was launched by the Ministry of Housing and Urban Affairs under the guidance of the Government of India to render support to the street vendors.  The scheme is launched to provide working capital, collateral-free loans of Rs. 15,000. After this, the loan amount will increase to Rs. 25,000 and Rs. 50,000, with a 7% subsidy. This PM SVANidhi Loan scheme was introduced to increase the use of digital transactions by street vendors. To encourage them, a cash-back incentive of Rs. 100 was given to these street vendors. 

Key Highlights of PM SVANidhi Loan 

The following are some of the key highlights of the PM SVANidhi Loan.  

  • Financial assistance of Rs. 15,000 has been provided to street vendors.  
  • Additionally, PM SVANidhi helps street vendors to restart and expand their business.  
  • The loan does not require any collateral.  
  • No processing fee is charged for the loan.  
  • Used for buying raw materials, paying rent, or purchasing equipment.  
  • Provide financial stability to street vendors, enabling them to become self-reliant.  
  • The loan must be repaid within one year.  
  • Loan scheme available in all states and union territories across the country. 

Objectives of the PM SVANidhi Scheme 

The following are some of the main objectives of the PM SVANidhi scheme. They are:  

  • Provide Collateral-Free Loans: The PM SVANidhi loan is a collateral-free loan designed to help street vendors restart or expand their businesses after the COVID-19 pandemic.  
  • Promote Financial Assistance: The PM SVANidhi Yojana provided financial assistance to downtrodden street vendors to restart or expand their businesses, which were affected by economic disruptions.  
  • Encourage Digital Transactions: The loan was also introduced to street vendors to help them embrace the country's digital revolution and encourage them to make digital UPI transactions.  The borrowers are entitled to a cash back incentive of Re. 1 for the first 100 digital transactions, with a maximum amount of Rs. 100 per month and Rs . 1200 per annum.  
  • Facilitate Formal Credit: The loan aims to bring street vendors, hawkers, cobblers, laundry services, barber shops, and other similar businesses under the formal credit system.  
  • Support Economic Revival: The loan provides a significant boost to street vendors, helping them restore their livelihoods after the pandemic's impact, and contributes to local economic growth.  
  • Encourage Timely Repayment: The PM SVANidhi loan was provided to street vendors to encourage them to repay the loan in a timely manner, thereby improving their credit scores. The move helps them in timely loan repayments through interest subsidies and a progressive increase to higher credit limits. 

PM SVANidhi Loan Interest Rate 

The interest rate charged by the PM SVANidhi loan is determined by the lending institutions. Some of the lending institutions that offer loans include Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Self-Help Groups, and various Cooperative banks.  

However, the interest rate will vary if the loan is obtained from Non-Banking Financial Companies and Non-Banking Financial Company-Micro Lending Institutions, based on the guidelines of the RBI.  

Borrowers can enjoy an interest subsidy from the Government at 7% subject to making on-time repayments of the loan. The subsidy will be directly credited to the beneficiaries' accounts on a quarterly basis. 

PM SVANidhi Loan Amount & Tenure 

The PM SVANidhi is granted to eligible street vendors and hawkers three phases. The details of the loan are given in the table mentioned below:  

Phases 

Loan Amount 

Tenure 

Phase 1 

Rs.15,000 

1 Year 

Phase 2 

Rs.25,000 

1.5 Years 

Phase 3 

Rs.50,000 

3 Years 

  • Phase 2 of the loan is disbursed to the vendors upon timely repayment of the first phase of the loan.  
  • Similarly, Phase 3 of the loan is provided to the vendors upon timely repayment of the first two phases of the loan.   
  • If you have repaid phase 2 of the loan in less than 6 months, you must wait until the minimum repayment period of 1 year has elapsed to become eligible for the third phase of the loan.  

PM SVANidhi Loan Eligibility Criteria  

Street vendors, according to the PM SVANidhi, are any person engaged in releasing articles, goods, food items, or merchandise for daily use. The following is the list of eligibility criteria for the PM SVANidhi loan. They are:  

  • Possess a certificate of Vending/Identity Card issued by Urban Local Bodies.  
  • Vendors identified in the survey of street vendors, but do not possess the ID card.  
  • Vendors who do not have an ID card or were left out in the survey must produce one of the following documents to obtain the Letter of Recommendation from the Urban Local Bodies.  
  • Documents of loans taken in the past from banks, vendors, and NBFC for the purpose of vending.  
  • Membership details of the National Association of Street Vendors in India (NASVI), the National Hawkers Federation (NHF), the Self-Employed Women’s Association (SEWA), and so on.  
  • Documents to prove that he is a vendor.  
  • Vendors can request that the Urban Local Body (ULB) verify their vendor status.  

Required Documents for PM SVANidhi Loan  

The following is the list of documents that are required for the PM SVANidhi loan. They are:  

  • Vendor’s Certificate  
  • Identity Card  
  • Aadhar card  
  • Voter's ID card  
  • PAN card  
  • MNREGA card  
  • Driving License  

Benefits of PM SVANidhi Loan  

The PM SVANidhi Loan offers a micro loan offered by the Government of India. It is a collateral-free loan that enables vendors to restart or grow their businesses. The scheme also facilitates digital payments, promotes credit discipline, and contributes to financial inclusion. This loan helps them to create long-term stability and self-reliance. Some of the benefits available under the PM SVANidhi loan are. They are:  

  • Operational Capital Support:  

This is a working capital loan provided to street vendors, which needs to be repaid within one year. The loan is disbursed to eligible vendors in three phases. The first phase costs Rs. 15,000, the second phase costs Rs. 25,000, and vendors can also obtain a loan of Rs. 50,000 in the third phase. There is no collateral for the loan. There is no prepayment penalty attached to the loan. Rate Details:  

The rate of interest charged for the loan is 10.25% per annum, in accordance with the RBI guidelines for the lender’s category.st Concession:   

Borrowers who repay their loan on time are eligible for a 7% interest subsidy. The amount is calculated and credited to the borrower’s online account on a quarterly basis.   

  • Encourage Digital Transactions:  

Under the PM SVAnidhi loan, street vendors are provided incentives for adopting digital monetary transactions. Lending institutions, in association with digital payment applications, will help onboard vendors for digital transactions, thereby eliminating the need to carry or manage physical cash.  

  • Building Formal Credit History:  

By availing of and repaying the loan on time, vendors can build their credit history, which will help them access formal loans more quickly. This lies in maintaining good credit behavior.  

  • Credit Cards Usage:  

Street vendors will be empowered to use credit cards. They can use this credit card to get immediate access to Rs. 30,000. The card will help them to use their urgent business and personal requirements.  

  • Skill Development:  

The PM SVAnidhi loan scheme has been designed to develop all-round competency in the lives of individuals, providing knowledge on entrepreneurship, digital skills, and marketing.   

How to Apply for PM SVANidhi Loan Online 

In order to apply for the PM SVANidhi loan online, follow the list of steps given below:  

  • Go to the PM SVANi website.  
  • Click the Apply for Loan section.  
  • Click the “Apply for 15K” option, “Apply for 25K” option, or the “Apply for 50K” option if you are applying for a loan for the first time.  
  • Enter the mobile number, and tick the “I am not a ROBOT” check box.  
  • Click “Request OTP.”  
  • Enter the OTP and click the “Verify OTP” button.  
  • A new screen opens. If you have an Aadhar card, select the “Yes” radio button.  
  • Select the type of category under the “Vendor Categories” section.  
  • If you have a “Certificate of Vending” with you, please provide the requisite SRN number.  
  • Submit the “Letter of Recommendation” if you are a vendor left out of the vendor identification survey.  
  • Fill out the personal information, address details, bank account details, and loan details, upload the various documents, and click “Save” and then “Submit” the application form.  
  • Select the Bank and Branch where you want the application to be processed and the loan amount disbursed for the release of the loan. You must agree to the declarations and authorizations. Click on “Save” and “Submit”.You will receive your application number .  

You can also apply for loans under the PM SVANidhi scheme by visiting the Common Service Centres (CSCs). They will assist you in completing the application form and submitting it along with the required documents.  

How to Check PM SVANidhi Loan Application Status  

You can track the progress of the PM SVANidhi loan application through the official government website. This will help the applicant determine whether their loan request has been reviewed, approved, or disbursed.  

  • Visit Official Website PM SVANi. 
  • Enter your SV Application Number and Mobile Number.  
  • Verify your application number using OTP.  
  • You will receive an OTP (One-Time Password) on your mobile number for authentication purposes.  
  • Once verified, you can view the application status, which may be indicated as “Pending Verification”, “Sanctioned”, or “Disbursed”. 

 List of Banks Offering PM SVANidhi Loan 

The PM SVANidhi loan is offered by a wide range of banks and financial institutions. The following table explains in detail the list of banks that are offering  the PM SVANidhi loan. 

Financial Institutions 

Banks 

Scheduled Commercial Banks State Bank of India, Bank of Baroda, Canar Bank, Punjab National Bank, Union Bank of India 
Regional Rural Banks Pratham Bank, Tripura Gramin Bank, Karnataka Vikas Grameena Bank 
Small Finance Banks AU Small Finance Bank, Ujjivan Small Finance Bank, Equitas Small Finance Bank, Utkarsh Small Finance Bank, Jana Small Finance Bank 
Co-operative Banks Saraswat Cooperative Bank, Cosmos Cooperative Bank and various district central cooperative bank 
Non Banking Financial Companies Muthoot Finance, Mannapuram Finance, Bajaj Finance, and Tata Capital Finance 
Micro Finance Institutions Spandana Sphorthy Bandhan, and SKS 

 Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Given that this type of data may change over time, we cannot guarantee the accuracy of the information supplied or included within it. It is anticipated that the user will confirm with the relevant source before making any choices or taking any actions. 

FAQs 

1. PM SVANidhi Loan – Explain.  

The PM SVANidhi loan is a government loan scheme designed to provide affordable working capital loans to street vendors who have been affected by the COVID-19 pandemic. This loan is designed to provide easy access to credit with an interest subsidy, and it does not require collateral.  

2. How to check the PM SVANidhi status?  

You can check the status of the PM SVANidhi application form by filling in the SV Application status along with your mobile number.  

3. Do you require a credit score for the PM SVANidhi loan?  

No. You do not require a credit score to apply for the PM SVANidhi loan.  

4. What is the maximum loan amount eligible under the PM SVANidhi loan?  

The maximum loan amount under the PM SVANidhi loan is ₹50,000. Additionally, you have repaid the first two phases of the loan, totaling Rs. 15,000 and Rs. 25,000, respectively.  

5. Does the PM SVANidhi loan require collateral?  

No. The PM SVANidhi loan does not require any collateral.  

6. What is the repayment tenure for the PM SVANidhi loan?  

The repayment tenure for the PM SVANidhi loan ranges from 1 to 3 years, depending on the loan phase.  

7. How does the PM SVANidhi loan encourage digital transactions?  

The Government encourages street vendors/hawkers to use digital payment platforms, such as UPI and QR codes. Regular digital transactions will also make you eligible for cashback incentives.  

8. What will happen if a vendor defaults on the loan repayment?  

A delay in repayment will disqualify the vendor from applying for the next phases of the loan and from the interest subsidies that accompany the loan. Persistent defaults will affect their credit score and also their loan eligibility status.